Economy adds 200K new jobs, unemployment falls to 8.5 percent

January 6, 2012

The Hill

By Vicki Needham and Ian Swanson

The economy added 200,000 jobs in December and the jobless rate fell to 8.5 percent, giving a boost to President Obama.

The 8.5 percent unemployment rate is the lowest the jobless rate has been in three years. The figures suggest the labor market is starting to expand more strongly after years of sluggish growth.

Obama is expected to discuss the numbers during comments later Friday morning at the Consumer Financial Protection Bureau. Obama defied Republicans and recess-appointed Richard Cordray to head that new bureau this week in a move business groups have said will likely draw lawsuits, since Republicans argue the Congress was not technically out of session.

The visit to the bureau is a bit of a victory lap for Obama, and the job figures offer some optimism for his reelection campaign that the economy is strengthening.

Republicans said it was good news that more people were finding work, but Speaker John Boehner (R-Ohio) in a statement said Senate Democrats were holding back the economy by not approving jobs bills approved by the House.

“The House has passed nearly 30 jobs bills that remain stuck in the Democratic-controlled Senate," Boehner said. "These bills, which passed the House with bipartisan support, would end some of the uncertainty facing small businesses and help create an environment where robust private-sector job growth is once again the norm."

Boehner said Obama should urge Senate Democats to take action on the bills.

The economy has added at least 100,000 jobs or more for the past six months as the number of the jobless has fallen to 13.1 million.

The Bureau revised figures for November down by 20,000, but revised figures for October up by 12,000. It also reported increases in the average hourly workweek and average earnings.

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