U.S unemployment rate falls unexpectedly to 8.5 percent in December

By IBTimes Staff Reporter | January 06 2012 9:05 AM

The U.S Department of Labor released the employment report for December, signaling unemployment rates dropped unexpectedly to 8.5 percent from 8.7 percent last month, the lowest rate in almost three years and smashing economists' median estimates of 8.7 percent.

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December employment conditions report showed nonfarm payrolls in the U.S increased by 200 thousand in the last month, compared to the prior revised 100 thousand added back in November the year ago, while surpassing median estimates of 155 thousand.

The U.S Private sector added 212 thousand workers to the private payrolls in December, up from the revised 120 thousand workers gained back two months ago and median estimates of 155 thousand.

While the U.S Manufacturing sector added more jobs than the 6 thousand add forecasted to 23 thousand in the last month from a revised a 1 thousand added to the manufacturing payrolls. Furthermore, the report signaled the average hourly earnings stood as forecasted at 0.2 percent in December and the at 2.1 percent in the year ended December.