Unemployment in the vicinity of three year low

1 in 3 people wait during the Chase Bank veterans day job fair in Phoenix, 11 November 2011 interviewed to be.

IMG credit: Reuters/Joshua Lott

By Lucia Mutikani

WASHINGTON (Reuters)-.

US employment growth accelerated last month and the unemployment rate fell to a near three-year low of 8.5 percent strongest proof winning economic recovery still steam.

Nonfarm payroll 200,000 in December, said the Labor Department on Friday. It was the biggest increase in three months and economists to beat expectations for a 150,000 gain.

The unemployment rate fell from a revised 8.7 per cent in November to its lowest level since February 2009, an encouraging sign of President Barack Obama of whose re-election hopes on the State of the labour market could hinge.

"Healing of the labour market, but we have still a long way to go to realise the losses we have suffered." We said to close to a turning point in which gains more threading can be, "Diane Swonk, Chief Economist at Mesirow Financial in Chicago."

A string of better than expected US data in recent weeks has a contrast between the rest of the world's largest economy and Europe, where the economy is strongly believed, will be highlighted to customer.

The jobs data was overshadowed by concerns about Europe's debt crisis in the financial markets. US stocks ended mostly down, while prices increased by the Treasury debt to safe port bids.

The dollar rose to a near 16-month high against the euro.

Republican presidential hopefuls have blown up Obama of economic policy do more harm than good.

The latest economic signs, but it could provide some political protection.

The economy added to 1.6 million jobs in the past year the most since 2006, and the unemployment rate which reached in October 2009, at 10 percent, 0.6 percentage points has decreased over the last four months.

Obama welcomed the news and called Congress a two month wage and payroll to help to expand the recovery sustainable tax cut by 2012.

"We are in the right direction move." Congress is to extend it the middle class, tax cut for everyone this year should go this recovery to ensure that we meet, "he said."

THE LONG ROAD BACK

Employment about 6.1 million has remained below the pre-recession level and in December the increase jobs pace, would roughly 2-1/2 years, to recover these jobs. There are around 4.3 unemployed for every job opening.

Unusually mild weather last month helped fuel a strong gain in construction employment. Courier jobs rose also sharply, a movement which fixed the Ministry of labour on strong online shopping for the holiday season.

These jobs could be lost in January and the jobless rate as Americans who leave the search after work had again drawn into the labour market could rise.

Mainly due to the strong rent the decline which was unemployment. The workforce decreased only slightly.

A broad measure of unemployment, which includes people who work but more looking and those who want more work only part time but fell on a nearly three-year low of 15.2 percent of 15.6 per cent in November.

Nevertheless, all in all, 23.7 million Americans are either from work or underemployed.

With the labour market still far from healthy, the debt crisis in Europe not dissolved and tensions over the Iran threatening oil prices drive is the US economy stiff headwind.

FED STILL IN THE GAME

Economists predict that the recovery will lose a step earlier this year after expanding in the fourth quarter on what should be the fastest pace in 1-1/2 years.

While the prospect of a further easing of monetary policy a little data was muted by the jobs, which remains shaky Outlook means roughly one-third of the asset purchases by the Federal Reserve one option.

"The Fed will just for more credible evidence that this improvement trend gains traction," said Anthony Karydakis, Chief Economist at the Commerzbank in New York.

New York Federal Reserve Bank President William Dudley on Friday suggested that the US Central Bank in the direction of buy more bonds borrowing costs low, pull based, recovery describes as "frustratingly slowly", and the unemployment rate as "unacceptably high."

"I believe it is also appropriate to assess whether we could offer more (Directive) accommodation," said Dudley.

GOVERNMENT A DRAG

All job gains in December came from the private sector, where increased wages and payrolls 212.000 - the most in three months.

Government employment was 12,000, with most of the resistance from local government layoffs. However, the pace of the Government jobs is moderate, as some States sales growth after years in the red.

For all 2011 added to the private sector 1.9 million jobs, while government employment 280,000 fell. A measure of the share of industry that had a rest was post profits in the course of the month on a five month high in December after diving in November.

Construction wages and payrolls increased 17,000 after falling 12,000 mild November weather ground-breaking ceremony for new home has increased.

Transport and warehousing employment jumped 50.200. Most of the rise came from the Messenger, where 42,000 jobs, what an increase in the delivery of online purchases while added to the holiday season.

Manufacturing employment rose by 23,000, the largest increase since July. Factory employment increased by 225,000 last year maintaining profits for the first time since 1997.

But there was soft spots in the retail sector, where wages and growth slowed payrolls to 27.900 after hefty gains in November as retailers up for a busy holiday shopping season focused.

Temporary setting, was a harbinger of future setting, for the first time June, 7,500 in December to Erlangen the 11.200 delete.

Hourly earnings rose by a modest four cent indicates that low figures to create the most jobs.

This is a potentially worrisome sign for private consumption largely by a decline in the savings, although it was supported signals a lack of tire pressure.

"Companies need to grow faster wages is to accelerate." "There of not much appetite increases to be," said Joel Naroff, Chief Economist of Naroff Economic advisors in Holland, Pennsylvania.

(Additional reporting by Alister Bull;) (Editing by Chizu Nomiyama)