The Labor Department says the current unemployment rate is 7.8% which is down from 8.1% last month.
And the force behind the drop?
According to the U.S. Labor Department, 114,000 jobs were added in the month of September.
This news is a big topic on the campaign trail Friday.
Republican Presidential candidate, Mitt Romney is fresh off what many pundits are calling a "big performance" in Wednesday night's debate.
As for Obama, a drop in unemployment probably couldn't have come at a better time.
"It might temper their movement and slow their movement down, and they might say, oh you know I guess it is really getting better, so I think the odds of the debate having that long and lasting impact and once it fades from people's minds, I think that's going to lessen the impact of the debates," said SUNYIT Political Science Professor, Steve Schneider.
Schneider says most voters will cast their vote in November based on the economy.
What still needs to be determined is if Obama will get credit for the drop in unemployment, or blamed for not doing enough.