Jobless Rate Falls To 7%, A 5-Year Low

Best since 2008

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The unemployment rate fell to 7 percent, the lowest level since 2008, as the U.S. economy added 203,000 jobs in November, according to government data released Friday.

November’s employment gains, released by the Bureau of Labor Statistics, beat Wall Street expectations. Four consecutive months of strong hiring have cut the unemployment rate to a 5-year low. The unemployment rate dropped from 7.3 percent to 7 percent.

Consumer spending also ticked up in October, the government said, despite mostly flat wages.

Investors have been closely tracking employment data as a signal of when the Federal Reserve will begin scaling back its policy of monetary stimulus through large-scale bond-buying, and the stock market has suffered losses in recent days in part because of expectations the central bank will soon begin “tapering” that policy. Investors interpreted October’s unexpectedly strong employment numbers, which many thought would be depressed due to lingering effects of the government shutdown, as a signal the Fed’s bond-buying program could be scaled back soon.

Futures in American markets were up slightly in early-morning trading on Friday.

5 comments
mary.waterton
mary.waterton

Yes, U3 has dropped to 7.0%. But that's because the government gets to pick and choose who is "unemployed". In contrast the LABOR FORCE PARTICIPATION RATE continues to drop and it cannot be explained by baby boomers retiring, moms quitting to have babies and going back to school. The numbers don't add up. As long as the stock market continues rising, nobody cares that the numbers don't add up. But after the next "black swan" event, then they will care.

ViableOp
ViableOp

As shown in this article, rather than concentrating on unemployment statistics, employment data actually shows the poor state of America’s job market:


http://viableopposition.blogspot.ca/2013/12/what-is-wrong-with-americas-employment.html


Since the end of the Great Recession, the nation’s employment-to-population ratio has seen no improvement, suggesting that there are simply not enough jobs being created to keep up with an increasing number of working age Americans.

Smiling1809
Smiling1809

Yes, and that is the fault of business getting greedy and cutting jobs to up their stock dividends. Many companies are making record profits and still cutting jobs. When they do that, it makes the economy worse because it takes paychecks out of the economy. It's a vicious cycle. The rich are funneling money from middle class jobs to themselves. One percent of the country now controls 40 percent of the wealth.