By: Shobhana Chandra
Source: bloomberg.com
The U.S. economy lost fewer jobs than forecast in July and the unemployment rate declined for the first time in more than a year, the clearest indication that the worst contraction since the Great Depression could be ending.
The nation lost 247,000 jobs in July, 78,000 fewer than projected by economists and after a loss of 443,000 in June, the Labor Department said Friday. The jobless rate fell to 9.4 percent from 9.5 percent.
The figures sent stock indexes soaring to their highs for the year and 10-year Treasuries heading for the worst week since 2003. At the same time, the White House warned the jobless rate is still likely to reach 10 percent, and with companies from Boeing Co. to Verizon Communications Inc. continuing to cut costs, any rebound in hiring may not come until 2010.
“The American consumer is by no means out of the woods, but we are moving in the right direction,” said Richard DeKaser, chief economist at Woodley Park Research in Washington, the only economist to correctly forecast the payroll and unemployment numbers. “We will see moderate growth in the second half and more of a pickup in 2010.”
President Barack Obama, speaking at the White House hours after the jobs report, said the unemployment numbers indicate “the worst may be behind us” for the recession.
U.S. Economy: Payroll Losses Slow, Jobless Rate Falls
