WASHINGTON (Reuters) – The U.S. unemployment rate surprisingly fell to a five-month low of 9.7 percent in January and factory payrolls grew for the first time since 2007, hinting at a labor market recovery even though the economy lost 20,000 jobs.

President Barack Obama cautiously welcomed the figures but said more needed to be done to put people back to work. Obama and fellow Democrats fear voters could punish them in November congressional elections if no headway is made in tackling unemployment as the United States emerges from recession.

The decline in payrolls reported by the Labor Department on Friday was far smaller than the 150,000 drop posted in December. November’s data from the survey of employers was revised sharply higher to a gain of 64,000, up from 4,000.

The jobless rate of 9.7 percent, based on a separate household survey, was lower than the 10 percent in December. That survey found employment rising, with the size of the labor force roughly flat.

WASHINGTON, Feb 5 (Reuters) – The U.S. unemployment rate surprisingly fell to a five-month low of 9.7 percent in January and factory payrolls grew for the first time since 2007, hinting at a labor market recovery even though the economy lost 20,000 jobs.

President Barack Obama cautiously welcomed the figures but said more needed to be done to put people back to work. Obama and fellow Democrats fear voters could punish them in November congressional elections if no headway is made in tackling unemployment as the United States emerges from recession.

The decline in payrolls reported by the Labor Department on Friday was far smaller than the 150,000 drop posted in December. November’s data from the survey of employers was revised sharply higher to a gain of 64,000, up from 4,000.

The jobless rate of 9.7 percent, based on a separate household survey, was lower than the 10 percent in December. That survey found employment rising, with the size of the labor force roughly flat.

WASHINGTON (Reuters) – The U.S. unemployment rate surprisingly fell to a five-month low in January and factory payrolls grew for the first time since 2007, hinting at a labor market recovery even though the economy lost 20,000 jobs.

President Barack Obama cautiously welcomed the figures but said more needed to be done to put people back to work. Obama and his fellow Democrats fear voters could punish them in November congressional elections if headway is not made in tackling unemployment.

The decline in payrolls reported by the Labor Department on Friday was far smaller than the 150,000 drop posted in December. November’s data from the survey of employers was revised sharply higher to a gain of 64,000, up from 4,000.

The jobless rate, based on a separate household survey, fell to 9.7 percent from 10 percent in December. That survey found employment rising, with the size of the labor force roughly flat. Analysts had expected payrolls to rise by 5,000 and the unemployment rate to edge up to 10.1 percent.

WASHINGTON, Feb 5 (Reuters) – The U.S. unemployment rate surprisingly fell to a five-month low in January and factory payrolls grew for the first time since 2007, hinting at a labor market recovery even though the economy lost 20,000 jobs.

President Barack Obama cautiously welcomed the figures but said more needed to be done to put people back to work. Obama and his fellow Democrats fear voters could punish them in November congressional elections if headway is not made in tackling unemployment.

The decline in payrolls reported by the Labor Department on Friday was far smaller than the 150,000 drop posted in December. November’s data from the survey of employers was revised sharply higher to a gain of 64,000, up from 4,000.

The jobless rate, based on a separate household survey, fell to 9.7 percent from 10 percent in December. That survey found employment rising, with the size of the labor force roughly flat. Analysts had expected payrolls to rise by 5,000 and the unemployment rate to edge up to 10.1 percent.

WASHINGTON (Reuters) – The number of U.S. workers filing for jobless benefits unexpectedly rose last week, but another big gain in productivity in the fourth quarter offered hope that companies were closer to adding to payrolls.

Initial claims for state unemployment insurance increased 8,000 to 480,000, the Labor Department said on Thursday. Financial markets had expected claims to come in at 460,000.

While claims are down sharply from their peak last spring, the improvement has stalled in recent weeks. Despite the setback, analysts are optimistic hiring will pick up soon as firms run out of ways to boost output without new workers.

Business productivity grew at a 6.2 percent rate in the fourth quarter as employers ramped up that quarter’s output at the fastest pace in six years and kept a tight lid on hiring, another Labor Department report showed.

WASHINGTON, Feb 4 (Reuters) – The number of U.S. workers filing for jobless benefits unexpectedly rose last week, but another big gain in productivity in the fourth quarter offered hope that companies were closer to adding to payrolls.

Initial claims for state unemployment insurance increased 8,000 to 480,000, the Labor Department said on Thursday. Financial markets had expected claims to come in at 460,000.

While claims are down sharply from their peak last spring, the improvement has stalled in recent weeks. Despite the setback, analysts are optimistic hiring will pick up soon as firms run out of ways to boost output without new workers.

Business productivity grew at a 6.2 percent rate in the fourth quarter as employers ramped up that quarter’s output at the fastest pace in six years and kept a tight lid on hiring, another Labor Department report showed.

WASHINGTON (Reuters) – Pending sales of existing U.S. homes edged up as expected in December, while home vacancies rose in the fourth quarter, pointing to a slow and painful recovery for the troubled housing market.

The National Association of Realtors said on Tuesday its Pending Home Sales index, based on contracts signed in December, rose 1.0 percent to 96.6 after a steep drop in November when a boost from an initial tax credit for first-time buyers ebbed.

The gain in the index, which leads sales of previously owned homes by one to two months, was in line with market forecasts. Compared to December 2008, it was up 10.9 percent.

The monthly rise in the Pending Home Sales index was not as large as in the months prior to the November slide and suggested existing home sales were flat to slightly weaker in January, analysts said. Existing home sales fell to their slowest sales pace in four months in December.

WASHINGTON, Feb 2 (Reuters) – Pending sales of existing U.S. homes edged up as expected in December, while home vacancies rose in the fourth quarter, pointing to a slow and painful recovery for the troubled housing market.

The National Association of Realtors said on Tuesday its Pending Home Sales index, based on contracts signed in December, rose 1.0 percent to 96.6 after a steep drop in November when a boost from an initial tax credit for first-time buyers ebbed.

The gain in the index, which leads sales of previously owned homes by one to two months, was in line with market forecasts. Compared to December 2008, it was up 10.9 percent.

The monthly rise in the Pending Home Sales index was not as large as in the months prior to the November slide and suggested existing home sales were flat to slightly weaker in January, analysts said. Existing home sales fell to their slowest sales pace in four months in December.

WASHINGTON (Reuters) – The economy grew at its fastest pace in more than six years in the fourth quarter, surprising economists, as businesses curbed their aggressive cut in stocks and stepped up spending.

The robust growth pointed to a sustainable recovery in a crucial period before government stimulus plans run out and was good news for an administration amid political difficulties.

Gross domestic product expanded at a 5.7 percent annual rate, the Commerce Department said on Friday in its first estimate for the quarter. It was a strong end to a year in which the economy shrank by 2.4 percent — the worst performance since 1946.

While much of the growth resulted from companies’ drawing down inventories more slowly than they did earlier in the year rather than from a surge in domestic demand, economists said it was still a positive report.

WASHINGTON, Jan 29 (Reuters) – The U.S. economy grew at its fastest pace in more than six years in the fourth quarter, surprising economists, as businesses curbed their aggressive cut in stocks and stepped up spending.

The robust growth pointed to a sustainable recovery in a crucial period before government stimulus plans run out and was good news for an administration amid political difficulties.

Gross domestic product expanded at a 5.7 percent annual rate, the Commerce Department said on Friday in its first estimate for the quarter. It was a strong end to a year in which the economy shrank by 2.4 percent — the worst performance since 1946.

While much of the growth resulted from companies’ drawing down inventories more slowly than they did earlier in the year rather than from a surge in domestic demand, economists said it was still a positive report.