The United States reduces unemployment to cheer its citizens by reaching 103,000 jobs in September.
Despite the dark predictions about further negative impacts of recession on American economy, Obama administration can boast to defy all by this added employment. However, the addition in jobs has not changed the current unemployment rate, which remains on its August level– 9.1 percent.
The US economy is going through severe financial crisis since 2008 following the fall of two major US banks Lehman Brothers and Merill Lynch.
Meanwhile President Obama is trying hard to pass the jobs bill. According to the Labor Department, the Democrat’s are likely to face tough time with expectations to improve US economy in the midst of aggravating recession.
The country has gained 55,000 new jobs altogather in September. Following this the Labor Department has revised its statistics of zero job growth to a gain of 57,000 jobs since August.
Addressing a conference, President Obama called on Congress to cooperate in improving national economy and prevent job losses. He also urged diplomats to not bring politics in the way of job bill for national interests.
On Thursday FedEx announced that it would cut 1,700 jobs in its United States freight business despite earning $380 million in the first quarter. According to the company the move is to offset losses in US freight business unit. Earlier FedEx announced that their first-quarter net income doubled as a result of strong international shipping.
FedEx profit mainly came from the international air shipments which has grown approximately 25 percent in the last quarter. However the US freight business unit has been unprofitable for four straight quarters and made a loss of $16 million.
The 1,700 job cuts represent 5% of total freight business employees. FedEx says the move to cut 1,700 jobs, along with other cost reduction plans, will ensure the freight business to be profitable next year.
The United States government decided to extend the emergency jobless benefits for the long-term unemployed for another six months.
On Thursday President Obama signed a six-month extension, restoring aid to almost 3 million citizens whose payment have been cut off since the emergency unemployment benefits program expired in early June. Barely three hours after the House approved the $34 billion measure President Obama approved the extension.
“Small businesses are the engine of job growth, and measures to cut their taxes and make lending available should not be held hostage to partisan tactics like those that unconscionably held up unemployment insurance,” President Obama said.