US unemployment hits four-year low as 236,000 jobs created in Feb
London, Mar. 9 : Unemployment rate in America has fallen to the lowest level in more than four years, according to a report.
Hiring by retailers, house builders and professional services firms saw 236,000 jobs created in February, the Bureau of Labor said.
According to the Telegraph, a separate survey showed that the unemployment rate dropped to 7.7 percent last month from 7.9 percent in January.
The figures are the lowest level since December 2008, when the devastating effect of the financial crisis was beginning to reverberate across the wider US economy, the report said.
High expectations of the Labour Department figures buoyed up European markets, with the FTSE 100, whose companies generate around a quarter of their revenues in the US, reaching a fresh five-year high, it added.
The resilience of America's jobs market is fuelling hopes that a recovery in the world's largest economy can withstand the cuts in government spending introduced last week, the report said.
According to the report, investors voiced their own confidence in the recovery by sending stock markets in New York to a record high last week and pushing the FTSE above the 6,000 level.
Despite the steady gains in jobs, the Federal Reserve remains unconvinced that the economy is strong enough to cope without the current mix of low interest rates and quantitative easing, the report said.
The report also showed the challenge the US still faces in reducing the number of long-term unemployed, the report added.