-
A demonstrator holds a sign reading the American dream is over during a rally outside Wall Street in New York - Source: Reuters
US employers cut a far fewer-than-expected 11,000 jobs in
November, the smallest decline since the start of the recession in
December 2007, government data showed, strongly suggesting the
deterioration in the labor market was in its final stages.
The Labor Department said the unemployment rate fell to 10% from a
26-1/2 year high of 10.2% in October.
The government revised job losses for September and October to
show 159,000 fewer jobs lost than previously reported.
Analysts polled had expected non-farm payrolls to drop 130,000 last
month and the unemployment rate to hold steady at 10.2%.
The data will take some pressure off President Barack Obama, a day
after he appealed to the corporate sector, at a jobs summit he
hosted, to join in the administration's employment creation
efforts.
While the economy has resumed growth after four straight quarters
of decline, there are concerns that labor market weakness will
prevent the recovery from becoming self-sustaining.
Government spending is largely driving the economy's recovery
from the worst recession in 70 years.
Since December 2007, when the economy slipped into recession, 7.2
million jobs have been lost, the Labor Department said.
But the pace of layoffs has slowed sharply from early this year.
Analysts believe the bruised job market may be close to turning
the corner, with jobs growth likely early next year.
November's data was the strongest since December 2007, when jobs
increased by 120,000.
Payrolls have fallen every month since then.
The improvement in the labor market last month was broad based,
with four sectors, including the government, adding jobs.
Manufacturing payrolls fell 41,000 after dropping 51,000 in October.
The construction sector shed 27,000 jobs, while the service-providing sector added 58,000 workers. Professional and business services added 86,000, while education and health services increased payrolls by 40,000.
Temporary help employment rose by 52,400.
