US recovery threatened by poor job data

03/12/10 17:01 CET

economy

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Optimism that the United States was ploughing on with its economic recovery took a blow on Friday with figures showing unemployment is at a seven-month high.

Just 39,000 jobs were created in October, compared to the 140,000 economists had expected.

They had also predicted the unemployment rate to stay stable at 9.6 percent. Instead it rose to 9.8 percent. It is not just an economic snag but a political one, with the job market seemingly to blame for the defeat of Barack Obama’s Democratic Party in last month’s mid-term elections.

The mood had been better after recent data showing retail sales were stronger than projected at the start of the Christmas shopping season.

Higher unemployment is likely to prompt the Federal Reserve to carry out its 600 billion dollar program to buy long term government debt, a plan that has proven to have many critics in the US.

More about: Jobs, Unemployment, USA

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