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Unemployment Rate Falls to 7.8% - Wall Street Journal Posted: 05 Oct 2012 08:43 AM PDT By JOSH MITCHELL And SARA MURRAYThe nation's unemployment rate fell to its lowest level since January 2009, suggesting job growth picked up over the summer and shifting questions in the presidential race about which candidate can best fix the nation's ailing economy. The unemployment rate slid to 7.8% in September, falling below 8% for the first time since President Barack Obama's inauguration, the Labor Department said Friday. Employers added a seasonally adjusted 114,000 jobs last month, a tepid pace that was countered by the fact that figures for previous months were boosted above initial estimates. Those figures reflected that the nation added 181,000 jobs in July and 142,000 jobs in August, showing that job growth in the third quarter was far higher than in the spring. The unemployment rate and the number of jobs are obtained from separate surveys and don't always align to convey the same picture of the labor market. That was the case this month. Overall, the report suggested the labor market—while stronger than it was during the spring—remains sluggish. The big drop in the jobless rate was in part due to workers settling for part-time jobs because they couldn't find full-time work. Some economists said the decline in the jobless rate likely occurred over a longer period than the report indicates, because the way the government calculates job growth and the jobless rate can be flawed and lead to artificial jumps that are later revised. "I take these numbers with an enormous grain of salt," said economist Joshua Shapiro of consultancy MFR Inc. in New York. "I think the underlying trend is pretty clear in terms of the labor market—that it's still struggling quite mightily." The report is one of the final major gauges of the economy before voters head to the polls Nov. 6 to choose the next president. The jobless rate is now back to where it was when Mr. Obama took office, potentially strengthening the president's argument that the economy is on the right path and gradually healing from a deep recession. However, just one president, George W. Bush, in recent decades has won re-election when the unemployment rate was unchanged or higher than when he took office. GOP presidential candidate Mitt Romney has said the economy is greatly underperforming and that the president's policies have impeded faster growth. Friday's report is the first since the Federal Reserve's decision to commence an ambitious stimulus program—buying $40 billion a month of mortgage-backed securities until the U.S. job market substantially improves. The latest numbers offer some good news with the falling unemployment rate but also suggests that job creation, while steady, remains slower than the Fed would like. Messrs. Obama and Romney have sparred over whose economic policies would lay the best foundation for job creation. At Wednesday's debate, Mr. Romney criticized the president for presiding over a period of high unemployment and stagnant wages that he said has squeezed middle-class families. "If I'm president I will create—help create—12 million new jobs in this country with rising incomes," Mr. Romney said. Mr. Obama highlighted steady growth: The private sector has added nearly five million jobs since February 2010. And he called for a "new economic patriotism" that embraces spending on education, training, energy and other areas to speed the recovery. Private companies accounted for most of the growth in September payrolls, adding 104,000 jobs. In the private sector, employment increased in health care as well as transportation and warehousing. Manufacturing employment fell by 16,000. Governments, meanwhile, added 10,000 positions as the federal and state-level workforces grew. So far this year, overall job growth has averaged 143,000 a month, compared with 153,000 in 2011. Average earnings rose by seven cents to $23.58 an hour, while the average workweek edged up by 0.1 hour to 34.5 hours in September. A broader measure of unemployment—which includes job seekers as well as those in part-time jobs--held steady at 14.7% in September. —Jeffrey Sparshott and Eric Morath contributed to this article. |
Fact Check: Obama says Romney opposed ending tax break – only he didn't - Fox News Posted: 05 Oct 2012 09:28 AM PDT A day after the Obama campaign countered Mitt Romney's strong debate performance by accusing him of playing fast and loose with the facts, President Obama threw out a doozy of his own. At a rally Friday in Fairfax, Va., Obama claimed Romney had outright rejected his proposal to end tax breaks for oil and gas companies. "He said there's no way that he'd close the loophole that gives big oil companies billions each year in corporate warfare," Obama said, in the middle of a litany of complaints on Romney's tax positions from Wednesday's debate. Just one problem. Romney didn't say that. Rather, the Republican nominee said that if tax rates are lowered as his plan calls for, the $2.8 billion in breaks for oil companies should be on the table. Here's what Romney said: "But, you know, if we get that tax rate from 35 percent down to 25 percent, why that $2.8 billion is on the table. Of course it's on the table. That's probably not going to survive (if) you get that rate down to 25 percent." The president, though, has been trying to recover from Wednesday's debate by casting the Republican nominee as an ideological shape-shifter. He claimed Thursday that the Romney who showed up to debate him is not the same Romney who's been showing up on the campaign trail. Campaign adviser David Axelrod called Romney a "serial evader" and an "artful dodger" in a conference call Thursday. "What we learned is that he'll say anything that makes him effective in the short term but vulnerable in the long term," Axelrod said. However, Romney told Fox News in an interview Thursday that the president just "wasn't happy with the response to our debate." He reiterated he wants to bring tax rates down while reducing deductions. "What the president's been saying and the reality are pretty far apart," Romney said. |
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