US jobless rate dips to 8.9 per cent, nearly 2-year low

Mar 4, 2011, 14:05 GMT

Washington - The US unemployment rate edged down to 8.9 per cent in February as 192,000 jobs were added by employers to the economy, the Labour Department reported Friday.

It marked the first time the jobless rate fell below 9 per cent since April 2009. It dropped from 9 per cent in January and is down from 9.8 per cent in November, a sign that the world's largest economy is beginning to show signs of a turnaround.

The data were roughly in line with economists' expectations, and the February gains were led by sectors that have suffered since the 2008-09 US recession, including manufacturing and construction.

Yet policymakers have been cautious about predicting a quick strengthening of the job market. The Federal Reserve has forecast that the unemployment rate will remain near its current level for the remainder of 2011.

Fed Chairman Ben Bernanke has warned it will be 'several years' until the jobless rate returns to the 4-6 per cent levels seen before the 2008 financial crisis plunged the world into its worst recession in generations.

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