Saver Alert - Unemployment Rate Dips to 7.7%

The Labor Department reported today that employers added 236,000 jobs in February, helping to lower the unemployment rate to 7.7%.

The Labor Department reported today that employers added 236,000 jobs in February, helping to lower the unemployment rate to 7.7%. Overall, the U.S. economy has lost 8.8 million jobs since the advent of the financial crisis, and has only generated 5.6 million jobs in the same period. The 3.2 million job diffrence is what is responsible for low savings and CD rates. For savers, the unemployment rate is the single most important indicator, since the Fed has pegged raising rates to the metric. The Fed has stated it will keep rates low until unemployment falls below 6.5%.

For more information on the impact of the Fed and other economic indicators on savings rates, please read the weekly Savings and CD Rate Update column. To access the latest update, click here.

Reviews

  • Alain

    March 11, 2013

    Bernanke may be forced to take the bowl away. Inflation rests on expectations and if people see the economy improving and start spending, that will cause inflation to begin bubbling. But we need several quarters of sustained growth. We need job creation of 300,000+ for three months in a row. If we get that, rates will take off with our without Bernanke.

  • Shorebreak

    March 09, 2013

    This year is starting out with a bang. Record high Dow, a hot housing market, improving retail sales and finally decent jobs numbers. I wouldn't, however, keep my hopes up for any change in ZIRP for a couple of years at least. The Fed, either under Bernanke or Yellen, would be hesitant to take the punch bowl away even if unemployment drops below 6.5 percent. The re-creation of another stock and housing market bubble is on Bernanke's wish list in order to spur robust spending. Unless there is a profound, sustained spike in inflation there is no compulsion to move away from the current rate policy.

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