Unemployment Rate Drops to 8.3 Percent

The economy added more jobs than expected and the unemployment rate fell in January.

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The unemployment rate unexpectedly fell in January and employers added nearly 100,000 more jobs than economists had expected.

The closely-watched indicator released this morning by the Bureau of Labor Statistics showed the rate fell to 8.3 percent from 8.5 percent in January. Payrolls grew by 243,000 workers.

That’s good news for, among others, President Barack Obama, whose chances of re-election could stand or fall on whether the unemployment rate continues to drop, and it’s also a sign that the economy may be gathering steam, with employers finally buying into the recovery.

Economists were expecting employers to add 150,000 jobs in January, and for the unemployment rate to remain steady at 8.5 percent.

Private-sector employers added 257,000 jobs in the month, a potential signs that all the entrepreneurs who have been starting or slowly growing companies throughout the long, cold jobs drought may finally be stepping on the gas and ramping up for a real recovery. Nearly every sector, from retailing to manufacturing, added jobs. Further, pay increased for private-sector workers by 4 cents an hour. The public sector continued to shed jobs, however, cutting 14,000 jobs in January.