BBC News with Sue Montgomery

Unemployment in the United States has fallen to 8.3%, raising hopes for further economic recovery. It's the lowest jobless rate for three years. Official figures show an increase of nearly a quarter of a million in the number of jobs created last month, more than predicted by analysts. Paul Adams reports from Washington.

The latest figures are much better than expected. The private sector is adding jobs in many areas, including manufacturing, healthcare and leisure, and the rate of unemployment has dropped again to 8.3%. The White House is clearly delighted with the new numbers, which it says provide further evidence of a healing economy. But there are plenty of warning signs. The Congressional Budget Office in its most recent report predicted that unemployment might creep back up over the course of the year, that economic growth would be modest and that annual deficit would remain in excess of$1tn for several years to come.