US unemployment falls to 8.5%

The U.S. Labor Department earlier today released December’s non-farms payroll report, which showed that some 200,000 new jobs were created last month. In contrast, the consensus forecast had called for only 150,000 new jobs. November’s data was unchanged.

The unemployment rate was surprising lower at 8.5%; the consensus of economists polled had called for a rise to 8.7% from last month’s 8.6% which had been seen by some as an anomaly.

Yesterday, the ADP report showed a rise of 325,000 new jobs in the private sector, well above the forecasts of a rise by 165,000. The U.S. Labor Department also reported that initial jobless claims fell to 372,000 in December from November’s 387,000.