US' declining January unemployment rate may favour Obama's re-election chances

Las Vegas Herald (ANI) Saturday 4th February, 2012

The latest job report, which pegs US unemployment at 8.3 percent may be a turning point for President Barack Obama ahead of the 2012 White House race.

The US added 243,000 new jobs in January, the most in nine months and almost double what most economists had predicted.

The figures come in the wake of Republican contenders targeting Obama on unemployment for the White House race.

The problem may not be fatal for the GOP, but if the growth continues through the spring and summer, "there's no way in the world that you can deny it helps Obama's case," the Los Angles Times quoted Republican pollster, Whit Ayres, as saying.

The election-deciding factor is likely to be, however, whether the US economy would sustain its current growth rate taking into account the economic growth rose in the winter or early spring, only to collapse again in the summer in the past.

Europe's debt problems, rising gasoline prices and the continued loss of jobs in state and local governments, which shed a net of 14,000 positions even as the private sector expanded by 257,000, have potential to derail the US economy.

Welch Consulting chief economist said Stephen Bronars, however claimed the "very strong" report gives reason for optimism.

"This is the best jobs report we have had in years because there were solid gains in many areas. We need job growth this strong over a sustained period, 24 months, to get employment as a fraction of population close to pre-recession levels," ABC News quoted him, as saying. (ANI)