Official figures have confirmed that for the month of January, the rate of unemployment across America unexpectedly fell to 9.7%, suggesting that the labor market might just be prepared to climb out of one of the worst recessions that have ever hit the country's economy.

A report released by the Labor Department revealed that over half a million Americans managed to find jobs, which helped push the unemployment rate to its lowest level recorded since August of last year.

Another survey carried out of the employers revealed that payrolls fell by 20,000 mainly on the back of construction companies and state and local Governments cutting back.

"Companies just can't meet demand requirements with their existing labor force, so they have to increase the number of workers. This report does seem to indicate the economy is moving in the right direction", said Carl Riccadonna, a senior U. S. economist at Deutsche Bank Securities Inc., New York.

More workers were hired by manufacturers for the first time in three long years, that too with expanded hours and increased pay.