The unemployment rate in the U.S. dropped to 8.3 percent in January, from 8.5 percent in December, falling for the fifth straight month and the lowest in nearly three years. Increased hiring in January found employers adding 243,000 jobs - a record increase.

The Labor Department announced this week that first-time claims for jobless benefits fell by 12,000 last week to 367,000; yet while the recent drop in the umemployment rate has added to consumer confidence, Federal Reserve Chairman Ben Bernanke said before a House hearing this week that "at current rates of growth, it could take more than three years simply to regain peak employment levels.

Few economists now consider manufacturing a potent engine for job growth in the United States. The Obama administration argues that manufacturers will continue to add jobs domestically, especially with a little help from Washington. Economists, however, have warned that Obama administration proposals seem unlikely to lead to major job growth, and that many businesses would still hire lower-cost workers overseas.

The House voted on Feb. 2 to take a "dynamic scoring' approach to assessing how legislation affects the economy. The bill directs the Congressional Budget Office to carry out impact studies in addition to estimating the cost of legislation. Democrats have called the measure a means for Republicans to understate the negative impact of tax cuts, and it is uncertain whether the bill will reach the floor of the Senate for a vote.