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U.S. Unemployment Rate Drops Unexpectedly to 8.4%

Trump

The U.S. labor-market rebound extended for a fourth month in August, with the unemployment rate falling faster than expected, offering hope that the economy can continue to recover despite the coronavirus pandemic.

Nonfarm payrolls increased by 1.37 million, including the hiring of 238,000 temporary Census workers, according to a Labor Department report Friday. The unemployment rate fell by more than expected, by almost 2 percentage points, to 8.4 percent.

The dollar and yields on 10-year Treasuries rose after the report, while U.S. stock futures reversed losses.

The drop in the unemployment rate to single digits, with two months before the November election, is a boost to President Donald Trump, who has often polled better than Democratic opponent Joe Biden on economic issues.

Trump tweeted after the report that the jobless rate went below 10% “faster and deeper than thought possible.”

An improving U.S jobs market is positive for Nigeria as global demand and oil should climb higher on the better numbers.

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