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Analysts predict recovery as unemployment rate dips
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Date: 02/05/2010
By:  Jackie Becker
Americans eagerly awaiting signs that the worst of the recession is over may have gotten their first true indication that their optimism has not been misguided. For the first time since September 2009, the national unemployment rate fell below double digits in January, according to a report released on Friday by the Bureau of Labor Statistics (BLS).

To start the new year off on a good note, the unemployment rate dropped to 9.7 percent in January , after hovering at 10 percent for the past several months.

In January, employers cut 20,000 jobs, representing the fewest total job losses in any month since the recession began toward the end of 2007, USA Today reports.

"Overall, we are definitely heading toward a job market recovery," John Challenger, CEO of the recruitment firm Challenger, Gray & Christmas, told the news source.

He added, "It may take longer than people like, especially those who have been out of work for a long time. Unfortunately, the hiring process is much slower than the firing process."

Notable, the BLS report revealed that manufacturers added 11,000 jobs during the month, the first increase in the sector since January 2007.

Additionally, retailers added about 42,000 jobs and the federal government took on approximately 33,000 new hires, many of them to fill temporary roles with the U.S. Census Bureau.

Experts have pointed to the addition of temporary positions as a strong indication of recovery, and firms typically hire temps just before they start adding full-time jobs, according to the news provider.

Another indication of a healing job market is the moderate increase in the average work week to 33.3 hours, which analysts say also usually precedes increased hiring trends.

According to the BLS, the country's labor market has lost 8.4 million jobs since December 2007, making the downturn the worst in the U.S. since the Great Depression.

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