US Jobs report says that unemployment rate drops to 9.1%

August 5th, 2011 - 9:58 pm ICT by Aishwarya Bhatt  

New York, Aug 5 (THAINDIAN NEWS) The US unemployment rate has dropped to 9.1% after about 117,000 nonfarm jobs were added to the economy in July. The job market performed much better than what some analysts expected.

The unemployment rate was 9.2% in June and analysts expected it to remain unchanged with only 75,000 jobs projected to have been added in July. However the strong performance of the job market in July has eased fears on the strength of the US economy.

Stock markets around the world responded positively to the latest US job report. The last two weeks have not been good for investors. Fears of US debt default and the state of the economy resulted in losses as some of the major exchanges plummeted. The current US job report has eased fears that the US economy is on the verge.

An analyst at Bank of New York Mellon explained that, “The headline surprise, compounded by upward revisions and an unexpected drop in the unemployment rate help to diffuse some of the severe pessimism over the outlook for the U.S. economy that has set in over the past two weeks.”

The US economy only added 85,000 new jobs in June.

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