Unemployment Rate Declines to 5.8 Percent: Unemployment Falls To Lowest Level Since Mid-1979
The U.S. economy ended 1987 on an apparently healthy note despite all the worries following the stock market plunge in October, with the number of people with jobs still rising and the civilian unemployment rate dropping to 5.8 percent, the lowest level since mid-1979, the Labor Department reported yesterday.</br></br>Civilian employment was up 2.8 million during 1987, growing 240,000 last month. Over the course of the year, the seasonally adjusted unemployment rate fell from 6.7 percent to 5.8 percent, the department said. The rate was 5.9 percent in November.</br></br>In addition, the number of unemployed workers seeking jobs last month dipped under 7 million for the first time since early 1980, a drop of nearly 1 million in the past 12 months.</br></br>"The labor market showed strength throughout most of last year, and the December figures continued that pattern of growth," said Janet L. Norwood, commissioner of labor statistics.</br></br>Payroll employment increased by 326,000 jobs last month, substantially more than most analysts had been expecting. Nearly one-third of the new jobs were in goods-pro-ducing industries, including a gain of 40,000 in manufacturing. After lagging behind other parts of the economy for several years, manufacturers added 406,000 jobs during 1987, partly in response to a large increase in demand for U.S, goods in foreign markets.