U.S. jobless rate hits four-year low in November
BY CHRISTOPHER S. RUGABER Associated Press
Saturday, December 08, 2012
12/08/12 at 4:35 AM
WASHINGTON - It takes more than a superstorm to derail the U.S. job market.
Employers added 146,000 jobs in November and the unemployment rate dipped to 7.7 percent, a four-year low, the government said Friday.
Though modest, the job growth was encouraging because it defied disruptions from Superstorm Sandy and employers' concerns about impending tax increases from the year-end "fiscal cliff."
Analysts said the job market's underlying strength suggests that if the White House and Congress can reach a budget deal to avoid the cliff, hiring and economic growth could accelerate next year.
A budget agreement would coincide with gains in key sectors of the economy.
Builders are breaking ground on more homes, which should increase construction hiring. U.S. automakers just enjoyed their best sales month in nearly five years. And a resolution of the fiscal cliff could lead businesses to buy more industrial machinery and other heavy equipment.
"The ground is being prepared for faster growth," said Nigel Gault, an economist at IHS Global Insight.
House GOP leader John Boehner said Friday that the two sides had made little progress in talks seeking a deal to steer clear of the cliff.
The White House used Friday's mixed jobs report as an argument to push President Barack Obama's proposed tax-rate increases for top earners, public works spending and refinancing help for struggling homeowners.
Superstorm Sandy, contrary to expectations, dampened job growth only minimally in November, the government said. Job gains were roughly the same as this year's 150,000 monthly average, and the unemployment rate fell two-tenths of a percentage point to its lowest level since December 2008.
That suggests that fears about the cliff haven't led employers to cut staff, though they aren't hiring aggressively, either. The economy must produce roughly twice November's job gain to quickly lower the unemployment rate.
Friday's report included some discouraging signs. Employers added 49,000 fewer jobs in October and September combined than the government had initially estimated. Monthly job totals come from a survey of 140,000 companies and government agencies, which together employ about 1 in 3 nonfarm workers in the United States.
The unemployment rate, derived from a separate survey of households, fell even though 122,000 fewer people said they were employed in November. That's because the number of people working or looking for work fell by much more - 350,000.
The household survey asks about 60,000 households whether the adults have jobs and whether those who don't are looking for one. Those without a job who are seeking one are counted as unemployed. Those who aren't looking aren't counted as unemployed.
All told, 12 million people were unemployed in November, about 230,000 fewer than the previous month. That's still many more than the 7.6 million who were out of work when the recession officially began in December 2007.
Investors appeared pleased with the report. The Dow Jones industrial average closed up 81 points.
The number of Americans who were working part time in November but wanted full-time work declined. And a measure of discouraged workers - those who wanted a job but hadn't searched for one in the past month - rose slightly.
Those two groups, plus the 12 million unemployed, make up a broader measure known as "underemployment." The underemployment rate fell to 14.4 percent in November from 14.6 percent in October.
Original Print Headline: Jobless rate extends slide
Associated Images:
A help wanted sign is posted on the front window of a clothing boutique Friday in Los Angeles. DAMIAN DOVARGANES/Associated Press
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