Unemployment rates in the U.S. rose by 7.9 percent despite 157,000 jobs being added in January.
Despite positive news from the Labor Department's jobs report Friday suggesting job growth acceleration in the end of last year and beginning of this year, unemployment rates in the U.S went up by 7.9 percent.
The fear of recession will slowly subside as the report suggests that 157,000 jobs were added in January with improvement in other economical data as well.
"A solid gain in US employment provides welcome reassurance that the US economy is healthier than the surprise fall in fourth quarter GDP indicated and is not at risk of a renewed recession," said Chris Williamson, chief economist at research firm Markit. "However, policymakers will no doubt remain unimpressed at the pace of the job market recovery, suggesting there is no end in sight for Fed stimulus."
House Speaker John Boehner said the latest numbers show "this is the wrong time for President Obama to scrap his jobs council."
"Month after month we see the same thing: high unemployment and even more debt. More than 12 million Americans are still unemployed, and it's been that way for far too long," he said in a statement.
The two key factors for this growth improvement have been cited as consumer spending and job addition. Firstly, consumer spending has seen a major increase since December. Also, to meet the growing housing demand, construction companies are taking up more projects giving rise to more construction jobs. Auto sales also reached their highest level in five years in 2012 and are expected to keep growing this year.
