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Unemployment falls to 7.8 percent, 114,000 jobs added

Job seekers wait in line to meet with a recruiter during a HIREvent job fair at the Hotel Whitcomb on July 10, 2012 in San Francisco, California.

The government's September jobs report is out this morning and the Bureau of Labor Statistics is reporting that the economy added 114,000 jobs last month and the unemployment rate dropped to 7.8 percent -- the first time it's fallen below eight percent in almost four years.

Bill Kosteas, an economist at Cleveland State University, says that number of jobs added in September is not very strong, "it's below what we would normally want to see just to keep the employment rate steady. I think the decline in the unemployment rate is actually coming from the upward revisions to the previous two months."

Jobs numbers for August and July were revised up by 46,000 and 40,000 respectively. "It looks like much of [the upward revision] is being driven public sector hiring, by government hiring, and they actually revised the private sector hiring downward," says Kosteas.

The labor force participation rate, the fraction of all people who are in the labor force, is becoming another important facet of the monthly jobs report, especially when looking at the overall unemployment rate. In September, the participation rate ticked up a tenth of a percent.

"It's an ok report, but we'll have to see the revisions to next month since we've been getting some pretty sizable revisions," says Kosteas of the numbers overall.

About the author

Jeremy Hobson is host of Marketplace Morning Report, where he looks at business news from a global perspective to prepare listeners for the day ahead.

Job seekers wait in line to meet with a recruiter during a HIREvent job fair at the Hotel Whitcomb on July 10, 2012 in San Francisco, California.

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For those who count numbers in this calamity it should be said repetitively that because of those new seekers attaining age necessary , It take about 200,000 new jobs to break even. I'm being generous. 114,000 should increase unemployment not decrease it. I do not argue the unfathomable methods of counting. Too counterproductive. We do know that roughly and approximately, not for sure 23% are really unemployed.
sadly, what we do see is 50% unemployment in the large cities of our Black and Brown Citizen youth! This isn't talked enough about! Illegal employment of well meaning immigrants add significantly to these numbers!

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