The jobless rate dropped to 7.7 percent last month, the lowest level since President Barack Obama was elected. The jobless rate improvement and an increase in hiring of 236,000 jobs in the United States has many thinking the economy is moving forward.
Still, White House economist Alan Krueger noted in a statement that the new unemployment rate was measured before $85 billion in automatic budget cuts started taking effect. The Obama administration has warned that these cuts could have a negative impact on employment and economic growth.
Krueger says Congress is being urged to move toward a “sustainable federal budget” by closing tax loopholes, enacting entitlement reforms and cutting spending.