The unemployment rate plunged for the fifth straight month to 8.3 percent, and under its influence the Dow Jones industrial average reached its highest level since the beginning of the financial crisis. Nasdaq also decided not to be left behind and reached an 11-year high. President Obama, whose reelection chances were not very bright with the sluggish economy not under control, lost no time in taking advantage of the improving jobs scenario to announce that the recession was receding and economic recovery was speeding up. However, his presidential rivals stressed that the unemployment rate is still very high. 

 

The economic momentum is, however, hanging by a thin thread that can snap at any time if there is another downturn in Europe, or if oil prices move up, or if there is another debt downturn in Washington. Notwithstanding these negative concerns, the jobs report shows that the economy is gaining traction. There has been a steady rise of 200,000 jobs monthly with the jobs coming from different quarters of the economy indicating that the recovery is broad-based. The manufacturing sector added 50,000 jobs which was a higher monthly figure than at any time since 1998.