U.S. Unemployment Falls, But New Jobs Lag

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The U.S. economy added 36,000 jobs in January, far fewer than economists had expected because of severe weather, but the unemployment rate fell to a two-year low of 9 percent.

Economists had expected at least 146,000 new jobs last month, so the numbers reported Friday by the U.S. Department of Labor painted a mixed picture of the economy, which has struggled for more than two years. Snow and ice storms in many parts of the country likely cut employment in construction and other industries, the labor department said.

The Labor Department's household survey determined that more than a half-million people without jobs found work. But there are still 13.9 million people who are unemployed.

VIDEO: Economists explain the biggest unemployment rate drop in a decade.
Unemployment Drops Because Americans Just Give Up

Kelley Briggs, 50, from Cumberland, R.I., was laid off in the same week more than two years ago as her husband. Both have since been in and out of jobs, and she had a 19-month period with no employment.

"It was frightening in that we didn't know how the future was going to go financially. It was frustrating because no matter how many times we applied for things, we didn't get anything. I couldn't even get interviews," she told ABC News. "I just think there was so many people looking. I don't think it was my age, but nobody will ever say that because of legal implications."

The labor department said harsh snowstorms last month cut into construction employment, which fell by 32,000, the most since May. A 45,000 drop in messengers and couriers cut that industry's employment by 8 percent. In one bright spot, manufacturing added 49,000 jobs, the most since August 1998. Some economists had expected unemployment to rise from December's 9.4 percent, making the surprise drop another bit of good news.

Richard Fuka, 50, has owned his own fishing business in East Greenwich, Rhode Island, since 1987. His boat has been idle for most of the past four years because of federal limits on each state's total allowable catch of fish.

"I would describe my business as the heart and soul of my entire life. I have had the spirit of wanting to be a fisherman since wanting to be a child.…I am so in love with my business it is beyond comprehension. It's my heart and soul and my family's life."

Fuka has managed to find other sources of income related to the fishing industry through entrepreneurship:

"I've taken the skills I've learned since I was a little boy. I've tried to get into the boat repair business to try to sustain myself while I wait for the president to answer our call for help so I can go fishing."

He has two sons in high school 13 and 16: "It has been very difficult for them, but at the same time, our household has chosen to take a proactive approach to look not at the glass half empty but glass half full. Because parents want to give everything to their children, in a painful way, they have reinvented themselves to make do.

"We have electricity and heat in the house but we keep it very simple. There have been times we have had electricity turned off, but you have to readjust and earn money to have these things," he said.

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