U.S. unemployment rate falls to five-year lowJanuary 10, 2014 - 18:33 AMT PanARMENIAN.Net - The U.S. unemployment rate fell to a five-year low of 6.7% in December as firms created 74,000 new jobs, latest figures show, according to BBC News. The number of jobs created was the lowest for three years and was well under half the number expected by analysts. The U.S. had bad weather in December, which may have stalled hiring plans. The fall in the rate, the lowest since October 2008, in part reflects people leaving the labor force. The government counts people as unemployed only if they say are actively searching for work. Leisure, manufacturing and services added jobs, but construction cut 16,000 jobs, the biggest drop in the industry in 20 months. In the four months before December, the average hiring rate was 214,000 jobs a month. Other figures on employment have suggested a healthy jobs market, and the Labor Department said 38,000 more jobs in November were created than the 203,000 previously reported. Overall, the U.S. economy is picking up steam, with recent figures for consumer spending, trade and factory output all strong. This year, economists expect the U.S. to grow by 3%, well up on the 1.7% last year. The improving picture led the U.S. central bank, the Federal Reserve, to start to taper its massive monetary stimulus program from $85bn a month to $75bn. If the Fed remains confident about the direction of the economy, it may trim this back further at its next meeting at the end of this month. Chris Williamson, the chief economist at Markit, said: "A steep fall in unemployment in December ups the odds of further Fed tapering. "Although non-farm payroll growth was disappointingly low, one month of weakness doesn't represent a trend and, with other economic indicators showing robust growth toward the end of last year, talk will intensify about when interest rates should start rising if we see a resumption of robust employment growth in January." Related links: Top stories Yerevan has dismissed Turkey’s demand to shut down the Armenian nuclear power plant as “inappropriate”. Armenia will loan 2.9 billion drams to Nagorno Karabakh (Artsakh), according to a draft government decision. The Ministry of Ecology and Natural Resources of Azerbaijan has “strongly condemned” Armenia’s decision. Kerobyan has said that for the first time in the history of Armenia, the volume of foreign direct investments amounted to about $1 billion. Partner news | Aliyev: No peace treaty unless Armenia changes constitution Azerbaijan will not sign a peace treaty with Armenia unless the latter changes its constitution, Azerbaijani President Ilham Aliyev said. Seven injured in massive gas station explosion in Armenia The Investigative Committee of Armenia has unveiled details about a massive explosion at a gas station on the Yerevan-Sevan highway. Pashinyan’s spokesperson denies intention to visit Baku for COP29 Pashinyan’s agenda doesn’t include a trip to Baku for the COP29 conference, his press secretary Nazeli Baghdasaryan has said. Russia accuses West of preparing invasion of CSTO countries NATO is preparing an invasion of the CSTO countries, the number of provocations in the air is growing, Sergei Shoigu has said. |