US unemployment fell to four-year low before Katrina
Saturday, September 3, 2005
The United States Department of Labor announced that the country's unemployment rate fell to a four-year low of 4.9%. American employers created about 169,000 new jobs in August. However, this trend is projected to end due to Hurricane Katrina (the data was collected prior to the hurricane).
Economists expect the number of jobless to grow by more than 500,000 in September and the unemployment rate to drive up over 5% again, but they are unsure of the effect an of upcoming Federal Reserve decision on interest rates. Some sources believe the Fed will make no change, while others say the rates will likely be increased to prevent the economy from overheating, causing inflation, which also may be caused by the surge in crude oil and gasoline prices.
The markets fell despite the unemployment data. The Dow Jones industrial average fell 12.26 points to 10,447.37 while Nasdaq fell 6.83 points to 2,141.07. The US dollar declined slightly against most world currencies.
- Tom Abate. "Employment figures go up in August. Slight increase noted before Katrina hit" — , September 3, 2005
- James P. Miller. "Job gains to wash away" — , September 3, 2005
- "BBC Market Data" — , September 3, 2005
|The text of this article has been released into the public domain. In the event that this is not legally possible, this article may be used for any purpose, without any condition, unless such conditions are required by law. This applies worldwide. Copyright terms on images, however, may vary, so please check individual image pages prior to duplication.
Please note that this only applies to Wikinews content created prior to September 25, 2005. All content created after that date is released under a Creative Commons license which is mentioned at the bottom of each article. This is currently the Creative Commons Attribution 2.5 License.