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Unemployment rate drops to 7.7 percent in February, 236,000 jobs added

By Steven Mitchell,

The month of February was a positive month, with unemployment dropping to a low of 7.7 percent.

The 7.7 percent unemployment rate is the lowest since December 2008, reports The New York Times. The U.S. added 236,000 jobs in the past month alone.

Construction employment along the U.S. grew 48,000 jobs. This is a good sign for the housing market as it looks like that is getting healthier. The number of government-related jobs dropped by 10,000, however.

Fox News reports that although February was a good month, the sequester could bring some damage to the unemployment rate.

"Unemployment has remained far too high for far too long as a result of President Obama's failed economic policies,” said House Ways and Means Chairman Dave Camp (R-Mich), “and the continued calls by the President and Congressional Democrats for more taxes are not the answer."

With the sequester coming in full effect March 1, the real feel of it won’t come till April. Michelle Meyer, senior United States economist at Bank of America Merrill Lynch, sees the upcoming months slow, but at the closing of the year the unemployment rate could be at 7.5 percent.

“We think we’ll see some slowdown in April and May because of the sequester,” Meyer said. “We’re going to see federal job cuts and the spring is going to be a soft patch for the labor market.”

The stock market has also been flourishing with the Dow closing above 14,000 this past week.

 

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