USA unemployment rate falls

The nation's unemployment rate fell to 7.8 percent in September, the first time it has fallen below 8 percent since February 2009 and raising hopes that the pace of U.S. job-creation is picking up. The U.S. Department of Labor said today that total nonfarm payroll employmentincreased by 114,000 in September, lowering unemployment 0.3 percentage points, from 8.1 percent in August. That brought the number of unemployed Americans down by 456,000 last month,to 12.1 million. After three straight disappointing months, total employment as measured bythe government's householdsurvey rose 873,000 in September. The employment-to-population ratio, a closely watched measure of the overall healthof the labor market, rose 0.4 percentage points to 58.7 percent, its highest level since May 2010. The numberof hours employees on private nonfarm payrolls work per week also ticked up, a sign that the employersmay soon plan to boost hiring. In another positive sign, the Labor Department revised upward the number of jobs created over the previous two months. The economy added 181,000 jobs in July, initially estimated at 141,000, and 142,000 in August, up from 96,000. The improved performance was evident across several sectors of the economy. Health care, transportation and warehousing, and financial services businesses all added jobs. The manufacturing industry, which had been a bright spot earlier in the year, shed 16,000 jobs amid a broader slowdown in the global economy. The latest jobs data represents a significant improvement over recent months, when slowing economic growth caused tepid hiring. The economy has added an average of 146,000 jobs a month since January. By comparison, 153,000 jobs a month were created on average in 2011. Although estimates vary, the economy needs to produce 90,000 to 125,000 jobs per month to match the number of people entering the labor force. Job-creation would have to rise well beyond those numbers to return the economy to full employment.