Unemployment Rate RISES On Weak Job Creation

WASHINGTON (By Lucia Mutikani): U.S. employment increased far less than expected in November and the jobless rate jumped to a seven-month high of 9.8 percent, dampening hopes for a self-sustaining economic recovery.

Nonfarm payrolls rose 39,000, with private hiring gaining only 50,000, the Labor Department said. However, overall employment for September and October was revised to show 38,000 more jobs than previously estimated.

Economists had expected payrolls to increase 140,000 last month and the unemployment rate to be unchanged at 9.6 percent.

A raft of recent data, including retail sales, had raised optimism the economy was accelerating after hitting a soft patch in the summer.

The unemployment rate bumped up in November as some discouraged workers probably rejoined the labor force. The separate household survey also showed a decline in employment.

The weak employment rate will embolden the Federal Reserve to fully implement its controversial $600 billion program to buy long-term government debt. The purchases are designed to push already low interest rates down further to stimulate demand.

Concerns about joblessness and low inflation led to the U.S. central bank's decision last month to launch its now much-criticized second round of quantitative easing, known as QE2 in financial markets.

Fed officials are not the only ones worried about unemployment. The health of the labor market could determine whether President Barack Obama gets a second term in office in 2012.

Disgruntlement over jobs cost the Democratic Party control of the House of Representatives in last month's midterm elections, setting the stage for a battle over economic policy with Republicans.

Employment in November was weak across the board, with government payrolls contracting as local authorities continue to struggle with budget problems.

Employment in the goods-producing sector fell 15,000, weighed down by manufacturing payrolls which fell 13,000 and construction shedding 5,000 jobs. Employment in the private service-providing sector rose 65,000 in November, though retail hiring fell a surprising 28,100 despite expectations of a busy holiday season.

The workweek was steady at 34.3 hours in November and average hourly earnings edged up 1 cent.

(Reporting by Lucia Mutikani; Editing by Neil Stempleman)

Copyright 2010 Thomson Reuters. Click for Restrictions.

Comments

[KWiedemer]

08:34 PM on 12/12/2010

I am a 99er in CO and want to thank Senator Udall for standing with Bernie Sanders and the others in opposition to this bill. I'm an unemployed business analyst that has been fighting for the 99ers since my UI benefits ran out in May.
I published an article this morning about Goolsbee's comments re the 99ers as well as info on how to have your letters hand-delivered to Sen Sanders in VT.

http://www.examiner.com/unemployment-in-denver/maddow-boldly-moves-the-99er-issue-to-the-forefront-join-the-99ers-new-effort. Here is part of what I wrote:

MSNBC's Rachel Maddow stepped up in a very bold way last night in her inteview w/ Austin Goolsbee. She only had a chance to ask a few questions and she ended with a bombshell question: "What about the 99ers".
For those who don't understand the 99ers issue and what the President has NOT done for 4.5 (soon to be 8 million) people, please take a minute and watch the video in my article. The response by Obama's administration is totally short-sighted, cruel and unacceptable.

[democrats for life]

03:18 AM on 12/04/2010

i used to travel alot. not anymore, i can't afford it. one thing i noticed, there are many countrys well advanced then us, because of the way our goverment is run. in this country, the congress only worry about the rich. like in France, the wealth is much more spread out, their heath care is free and the best in the world. they get unlimited unemployme­nt, and you can get 5 weeks of vacation, immediatel­y after starting a new job. it takes 15-20 years of employment at the same place to get that kind of vacation time here. and when your sick, you can take as much time off as you want. if you tell the doctor your not up to working yet, the company you work for will pay 65 percent of your wages, the govt picks up the rest. they live a average 3 years longer then us, they only have to work 35 hours per week, and live a nice, low stress life.it's time we spread the wealth here, let the top 2 percent pay 91 percent in taxes, to get this economy going again !

[Barbara Battibulli]

01:08 AM on 12/04/2010

When are we going to get the REAL unemployment number, which is around 20%. What are we doing to discourage corporations from sending jobs overseas? How many jobs could we regain by bringing jobs back to the US? Why are Washington Economists and Labor 'experts' giving out these phony numbers, ie, 5 people for every job? Every interview I've been on and casually asked, I've been told that there is more like 100-125 people applying for each job. What the hell, this isn't even newsworthy anymore. The media give the unemployment situation very little attention when they should be SCREAMING this news. Hungry people will take to the streets -- Bad news for Obama. If nothing changes, there will be rioting in the streets and he'll be a one-term President who's administration was an utter failure. God help us if we get another 'RepubliThug' like GWB.

[420]

08:54 PM on 12/03/2010

The GOP cares nothing a about us little guys, zero. They will hold America hostage till they get their way. How selfish how sad, And they profess to be Christians? WTF

[InsiteFX]

06:42 PM on 12/03/2010

Watch these

http://www.trutv.com/video/conspiracy-theory/govt-sachs.html

http://www.trutv.com/video/conspiracy-theory/liars-loans.html

http://www.trutv.com/video/conspiracy-theory/ron-paul-fed.html

http://www.trutv.com/video/conspiracy-theory/govt-collusion.html

[kizzie]

12:44 AM on 12/04/2010

Isn't Jesse Ventura's show great???!!!!

[leonhardsr]

06:24 PM on 12/03/2010

Unemployment can not be solved by the Democrat version of Commuisn. Senator Menedz said dealing with the republican Congress is like dealing with terrorist. If he needs help dealing woth terrorist. Our President is experienced. His Father was a Muslin Radical in Kenya. Islinsky is Ubama's and Hillary;s Idol Ubama was very close to THe weatherman terorist before he took Office, He Marched With Farakan. Appointed a Attorney General and staff of Attorneys that represented Terrorist. He appointed Van Jones a terrorist excuse box. He had a staff menber that admired Mao. His Reverend Wright Claims 911 was a punishment to America, He calls illegal aliens undocuemented workers ready to become Democrat Voters. He Backed Acorn, ; Need anymore imformation???????? AND AnD His secretary of State Clinton Defended a Black Panther Murderer Who killed a African American FBI secret agent. Even lead a march against America to help The Black Panthers Cause. Her Husband was a draft dodger that burned the American Flag in England

[InsiteFX]

04:53 PM on 12/03/2010

There is only one way to fix economy!

1) Quit outsourcing all the jobs.
2) Get rid of Wal-Mart.
3) Quit importing everything from China.

If you look at whats going on in the world all countries only one is not having problems
with the economy CHINA!

[OnlyaKing]

05:53 PM on 12/03/2010

I think you need to do a little research on what the quality of life is for most of Chinas people.
And why again would you get rid of the largest employer in America?

[democrats for life]

04:18 AM on 12/04/2010

actually, our unemployment rate is now 23.9 percent. we are officially a 3rd world country

[maim]

04:44 PM on 12/03/2010

Government can hardly help the economy, but it surely can hurt it a lot. Obama must step aside with all of his "keeping boot on the neck of business" ideological poisons, taxes, redistribution -- all o fit. If he resists, we need to think about impeachment.

[democrats for life]

03:12 AM on 12/04/2010

impeachment based on what? Bush is the one who broke laws several different times. he should be hunted down and charged with all his crimes

[VetKor51]

04:43 PM on 12/03/2010

The same policies that were in effect when Bush was in office still exist. Why then do we have massive unemployment?
Next question: How much will extending the tax cuts for the rich (which obviously did not work) add to the deficit each year for the next ten years?
Third question: Why aren't the above figures being reported?

[OldTulsan]

03:21 PM on 12/03/2010

U.S. workers that are still employed are going to learn the Iron Law of Wages first-hand...

http://www.commondreams.org/headline/2010/11/24-2
Firms See Long-Sought Goal in Sight: Major Pay Cuts | CommonDreams.org

"...These firms are systematically implementing a major strategy to permanently drive down wages far below anything considered "middle class." The key tool for corporations: forcing acceptance of permanent two-tier wage structures and the insertion of nonunion casual workers into union plants to drive down union pay to levels unimaginable a couple years back. Big business is essentially trying to take back the hard-won gains of working people won over generations.

[snip]

Expect the downward wage spiral to continue under relentless pressure from corporations who see an endless surplus army of labor with 9.6% unemployment and benefits running out for two million in December.

For example, "Toyota 's goal has become $12.64 an hour, the median wage for comparable manufacturing in Kentucky, where it has its largest plant, or $10.79 in Alabama, where it is building a new plant," reports UC-Berkeley Prof. Harley Shaiken, a long-time scholar on labor issues and the auto industry..."

[serialcoma]

03:20 PM on 12/03/2010

I really have to admit.. the current herd of troles commenting in here are some of the dvmbest we have ever had to endure....  short buses must not be running today.

[drbslurp]

03:38 PM on 12/03/2010

So true - Democrats and lefties always embarrass themselves so badly

[serialcoma]

03:40 PM on 12/03/2010

Too dvmb to even recognize yourself for what you are... a true trole.. your little trole buddies will be very proud of you.. thinking people not so much.

[halconnoche]

04:31 PM on 12/03/2010

Your inability to provide any support for your theories here today has been quite entertaining. Making declarative statements and then insulting people who argue against you simply displays your ignorance for the world to see. Someday you will come to realize that what everyone was laughing at was you.

[KWiedemer]

02:46 PM on 12/03/2010

WHY does every single report I read about extending unemployment benefits IGNORE the fact that there are already 4-5 MILLION people who have exhausted all benefits?
These are called the 99ers - and there is no bill other than S3706, the Americans Want to Work Act (which has been stalled in the Senate Finance Committee for months) - that includes the 99ers.
Why is it that all media, all so-called homelessness and poverty advocacy groups such as NELP, 9to5, etc seem to be only concerned about those unemployed workers who were laid off later in this recession? The people who got laid off at the top of the recession just don't matter? 4-5 million people just don't matter in this country?

Please - do some COMPLETE and accurate reporting on the number of people affected by Congress' unwillingness to extend unemployment benfits - and stop ignoring one of the most important facts about the need to extend UI benefits - for ALL American workers whose lives have been destroyed as a result of this jobless economic meltdown - complete, fair and accurate reporting would be a very refreshing change indeed.
Denver Unemployment Examiner
http://www.examiner.com/unemployment-in-denver/150k-unemployed-coloradoans-at-risk-of-joining-more-than-26k-existing-99ers

[Kagey Good]

02:54 PM on 12/03/2010

I am a 99 er and the UE in Florida remains at about 12%. I talk to people everyday you are getting utilities cut off, I have been trying to get Food Stamps reinstated....I wonder if Mr. Obama or Ms. Michelle has ever tried CALLING n of their precious agencies.
It kills me, they report that UE is recovering..it's just that millions of us STILL can not find jobs, but we no longer have benefits..or life lines...Watch the Welfare rolls Mr. Obama..............our people are just hungry and now cold.............Please help us

[DocJR]

02:29 PM on 12/03/2010

"The weak employment rate will embolden the Federal Reserve to fully implement its controversial $600 billion program to buy long-term government debt."
How about spending a few bucks on jobs creation. We could greatly reduce our debt if people were employed, making their mortgage payments and not living in fear of being homeless.

[InsiteFX]

05:00 PM on 12/03/2010

Look who is making all the money in the Stock Market!

[Earl K]

02:13 PM on 12/03/2010

I realize there are a LOT of unemployed people out there. So, why am I getting calls from recruiters all the time? I am RETIRED darn it! So far today, (12/03/10 1:10 pm CST) I have had two recruiters call me. AGAIN: I AM RETIRED DARN IT!!!!!!!

[InsiteFX]

05:02 PM on 12/03/2010

Must be all the scam phone calls going around!

[jk1340]

01:46 PM on 12/03/2010

Rising unemployment will continue. As stimulus dollars run out, and budgets are tight for governments - both state and federal, I expect the next surge in job loss will be from the public sector. This recovery is a long term exercise.

[democrats for life]

03:17 AM on 12/04/2010

we suppose to hit 5 percent unemployment by 2021