Based on its most recent survey, Gallup reports today that the unadjusted unemployment rate in the US fell from 9.1% in February to 8.4% in March. The adjusted rate also fell, from 8.6% to 8.1%. The US Bureau of Labor Statistics reported a seasonally adjusted US unemployment rate of 8.3% in February and that rate is not expected to change when March figures are announced tomorrow.
Gallup notes that Fed Chairman Ben Bernanke recently said that the sudden uptick in employment could be due to larger-than-necessary cuts in the US workforce in the early days of the Great Recession. If that is the case, once companies “right-size” their own workforces, the hiring bump we’re seeing is likely to stall because the US economy is still growing a very moderate pace. Gallup even suggests that the unemployment rate could fall below 8% very soon, with positive implications for the economy and all those incumbent politicians, including President Obama, who are running for re-election.
The Gallup announcement is available here.