85,000 jobs lost over December in the U.S

The United States lost 85,000 jobs in December; this coincides with the Federal Reserve prediction that a labor market recovery will take time. This could keep interest rates down for the next 6 months.

This has come as a blow because in November a gain of 4,000 was shown. Economists surveyed by Bloomberg News believed there would be no change for December. Stocks fell because of concern the recovery may weaken. It seems while job losses have eased companies are holding back on hiring.

Over the past two years, the drop in Unemployment has been the biggest as a percentage of all jobs since World War II was ending in 1944.It certainly puts the Obama administration under pressure, because about half of the jobs lost during the recession have occurred since the president’s reign.

Source bloomberg.com.