Barack Obama hails 'clear' the decline in unemployment

President Obama cautiously praised the "clear" trend of job growth, and called on businesses to boost investment.

his remarks came as a window manufacturer unemployment rate fell to 9.4% U.S. 0.4 points in December, the biggest drop month by 1998.

Some 103,000 jobs were created last month, the Labor Department said, although it was less than expected.

But Federal Reserve Chairman Ben Bernanke warned jobs could remain depressed for four to five more years.

Lower unemployment rate, while cheering, came not only because more people found jobs, but also because 260,000 abandoned and stopped looking counted as unemployed.
"Invest now"

Touring energy efficient window manufacturer in Maryland, Mr. Obama said the jobs report showed a clear trend towards economic growth.

He provided a package of tax cuts forged with Republicans last month will further boost hiring, and businesses were urged to think about job creation to continue.

"If you're planning to make investments in the future, making now and will help us grow the economy," he said.

"We want businesses to grow, we grow this economy and we want to put people back to work."

In the U.S. Senate, meanwhile, Federal Reserve chairman Ben Bernanke warned the labor market may return to normal levels for another four years or five years.

He said the economy had entered "a self-sustaining recovery" powered by consumer spending and business investment growing robust.

But, he added a warning: "Despite these hopeful signs ... [with] the employer reportedly still reluctant to increase wages, considerable time will likely be needed before the unemployment rate has returned to a level more normal.

"Stubbornly high unemployment, a household income of damping and confidence, could threaten the health and sustainability of recovery."

According to official Department of Labour figures, seasonally adjusted non-farm payroll employment increased by 103,000, the number of unemployed dropping from 556,000 to 14.5 million.

total employment for October and November were revised to show 70,000 more than previously reported job gains, and the unemployment rate is now at its lowest since May 2009.

private hire in December rose by 113,000, while employment government fell by 10,000.

Employment increased by 47,000 in the leisure sector and 36,000 in hospitality and healthcare, but was little changed in other major industries, the Labor Department said.

Federal Reserve Governor Elizabeth Duke also sounded cautiously upbeat note in the remarks on Friday.

"Overall, the recovery in economic activity so far has been uneven and insufficient to reduce unemployment remarkable," she said.

"But I'm encouraged by signs that recovery may have gained traction recently."

Labor Secretary Hilda Solis told the BBC she hoped unemployed Americans had stopped looking for work - thereby driving down the unemployment rate - will return to the labor market.

"We need to keep people energized," she said.

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