The September jobless rate according to the Bureau for Labor Statistics dipped down to 7.8 percent from 8.1 percent in August.
This is the first time since January, 2009 that the unemployment rate went below 8 percent and the lowest rate since President Barrack Obama took office. Economists were anticipating the jobless rate to creep up to 8.2%.
The number of unemployed people now stands at 12.1 million decreasing by 456,000 last month. Forty percent of the unemployed have been unemployed for at least six months or more.
New job growth for September was 114,000, with jobs creation numbers for July and August revised upwards. Employment increased in health care and in transportation and warehousing but changed little in most other major industries. Most of the new jobs added were in part-time and self-employed positions.
The Hispanic unemployment rate dropped to 9.9 from 10.2 percent in August, while the 18-29 year old Hispanic unemployment rate dropped to 12.1 percent from came 13.7 percent in the same month.