Unemployment Rate Drops Unexpectedly

Washington, DC, Feb. 5, 2010--The U.S. unemployment rate fell unexpectedly to 9.7% in January from 10% in December, according to the Department of Labor.

However, non-farm payrolls fell an additional 20,000 net jobs over the month, more than the 15,000 economists expected.

The January jobless figure was based on new population data from the Census Bureau, which complicates comparisons with the December employment statistics.

The job cut figures are based on a survey of 160,000 businesses and government agencies. The department also revised December job losses higher, from 65,000 to 150,000 jobs.

Friday's report also said that the U.S. economy eliminated 8.4 million jobs since the recession began officially in December 2007 -- about 1.2 million more than initially estimated.

The good news is that job declines have moderated sharply, from a high of 753,000 monthly payroll losses on average in the first quarter of 2009 to an average monthly fall of 103,000 in the final quarter of last year.

The report also showed that construction cut 75,000 jobs while manufacturing employment turned up slightly.