Unemployment Rises to 9.8% as U.S. Adds Just 39,000 Jobs
source: http://www.bloomberg.com/news/2010-12-03/u-s-added-39-000-jobs-in-november-unemployment-rose...
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Employers added fewer jobs than forecast in November and the unemployment rate unexpectedly rose, underscoring the Federal Reserve’s decision to pump more money into the economy to spur growth.
Payrolls increased 39,000, less than the most pessimistic projection of economists surveyed by Bloomberg News, after a revised 172,000 increase the prior month, Labor Department figures showed today in Washington. The jobless rate rose to 9.8 percent, the highest since April, while hours worked and earnings stagnated.
Stocks declined and Treasury securities jumped as the report showed payrolls aren’t growing fast enough to reduce the jobless rate, one reason why Fed policy makers announced a new round of monetary stimulus. More jobs are needed to sustain the holiday-season gains in consumer spending, the biggest part of the economy, into the new year.
“The labor market is not turning around, and that’s key to the overall recovery,” said David Semmens, a U.S. economist at Standard Chartered Bank in New York. “Anyone who feels that the Fed perhaps acted too prematurely is definitely going to have to eat their words.”
The Standard & Poor’s 500 Index dropped 0.3 percent to 1,217.45 at 9:36 a.m. in New York. The benchmark 10-year Treasury note rose, pushing down the yield to 2.93 percent from 2.99 percent late yesterday.
Private Payrolls
Private payrolls that exclude government agencies also gained less than forecast, rising by 50,000 in November. Economists projected a 160,000 gain, the survey showed.
The unemployment rate was forecast to hold at 9.6 percent, according to the median prediction of 83 economists surveyed by Bloomberg. Estimates ranged from 9.4 percent to 9.7 percent.
Manufacturers cut jobs for a fourth straight month, payrolls dropped at construction companies and government employment declined.
Overall payrolls were forecast to climb by 150,000, according to the survey median, with estimates ranging from 75,000 to 200,000. The October figure was revised up from an initially reported gain of 151,000.
Manufacturing payrolls dropped by 13,000 in November, the most in three months. Economists had projected an increase of 5,000.
Construction Companies
Employment at service-providers increased 54,000. The number of temporary workers rose 39,500. Construction companies subtracted 5,000 workers and retailers let go 28,100 workers.
Financial firms cut 9,000 workers. Boston-based State Street Corp., the third-largest custody bank, on Nov. 30 said it will cut 1,400 jobs, or about 5 percent of its workforce, to reduce costs as interest rates near zero erode profit.
“Amid the current challenging economic conditions, we will continue to improve our operating environment in the short-term while ensuring that we have the right structure in place for long-term growth,” Chief Executive Officer Joseph “Jay” Hooley said in a statement.
Average hourly earnings were $22.75 in November from $22.74 in the prior month, today’s report showed.
Government payrolls decreased by 11,000. State and local governments reduced employment by 13,000, while the federal government added 2,000 jobs.
New York City, facing a $3.3 billion deficit in next year’s budget, will cut its workforce by more than 10,000 over the next year-and-a-half, Mayor Michael Bloomberg’s budget office said Nov. 18. More than 6,200 workers will be fired, and the remainder of the cuts will be made through attrition, his office said.
The mayor is founder and majority owner of Bloomberg News parent Bloomberg LP.
Work Week
The average work week for all workers held at 34.3 hours.
The so-called underemployment rate -- which includes part- time workers who’d prefer a full-time position and people who want work but have given up looking -- held at 17 percent.
“The labor market is capping off a very poor recovery this year,” said Guy LeBas, chief fixed-income strategist at Janney Montgomery Scott LLC in Philadelphia. “I don’t think we’ll slide back into job losses, but being stuck in neutral isn’t good. While consumer spending has normalized, employers are uncertain about demand going into 2011.”
Read more at: http://www.bloomberg.com/news/2010-12-03/u-s-added-39-000-jobs-in-november-unemp...
Payrolls increased 39,000, less than the most pessimistic projection of economists surveyed by Bloomberg News, after a revised 172,000 increase the prior month, Labor Department figures showed today in Washington. The jobless rate rose to 9.8 percent, the highest since April, while hours worked and earnings stagnated.
Stocks declined and Treasury securities jumped as the report showed payrolls aren’t growing fast enough to reduce the jobless rate, one reason why Fed policy makers announced a new round of monetary stimulus. More jobs are needed to sustain the holiday-season gains in consumer spending, the biggest part of the economy, into the new year.
“The labor market is not turning around, and that’s key to the overall recovery,” said David Semmens, a U.S. economist at Standard Chartered Bank in New York. “Anyone who feels that the Fed perhaps acted too prematurely is definitely going to have to eat their words.”
The Standard & Poor’s 500 Index dropped 0.3 percent to 1,217.45 at 9:36 a.m. in New York. The benchmark 10-year Treasury note rose, pushing down the yield to 2.93 percent from 2.99 percent late yesterday.
Private Payrolls
Private payrolls that exclude government agencies also gained less than forecast, rising by 50,000 in November. Economists projected a 160,000 gain, the survey showed.
The unemployment rate was forecast to hold at 9.6 percent, according to the median prediction of 83 economists surveyed by Bloomberg. Estimates ranged from 9.4 percent to 9.7 percent.
Manufacturers cut jobs for a fourth straight month, payrolls dropped at construction companies and government employment declined.
Overall payrolls were forecast to climb by 150,000, according to the survey median, with estimates ranging from 75,000 to 200,000. The October figure was revised up from an initially reported gain of 151,000.
Manufacturing payrolls dropped by 13,000 in November, the most in three months. Economists had projected an increase of 5,000.
Construction Companies
Employment at service-providers increased 54,000. The number of temporary workers rose 39,500. Construction companies subtracted 5,000 workers and retailers let go 28,100 workers.
Financial firms cut 9,000 workers. Boston-based State Street Corp., the third-largest custody bank, on Nov. 30 said it will cut 1,400 jobs, or about 5 percent of its workforce, to reduce costs as interest rates near zero erode profit.
“Amid the current challenging economic conditions, we will continue to improve our operating environment in the short-term while ensuring that we have the right structure in place for long-term growth,” Chief Executive Officer Joseph “Jay” Hooley said in a statement.
Average hourly earnings were $22.75 in November from $22.74 in the prior month, today’s report showed.
Government payrolls decreased by 11,000. State and local governments reduced employment by 13,000, while the federal government added 2,000 jobs.
New York City, facing a $3.3 billion deficit in next year’s budget, will cut its workforce by more than 10,000 over the next year-and-a-half, Mayor Michael Bloomberg’s budget office said Nov. 18. More than 6,200 workers will be fired, and the remainder of the cuts will be made through attrition, his office said.
The mayor is founder and majority owner of Bloomberg News parent Bloomberg LP.
Work Week
The average work week for all workers held at 34.3 hours.
The so-called underemployment rate -- which includes part- time workers who’d prefer a full-time position and people who want work but have given up looking -- held at 17 percent.
“The labor market is capping off a very poor recovery this year,” said Guy LeBas, chief fixed-income strategist at Janney Montgomery Scott LLC in Philadelphia. “I don’t think we’ll slide back into job losses, but being stuck in neutral isn’t good. While consumer spending has normalized, employers are uncertain about demand going into 2011.”
Read more at: http://www.bloomberg.com/news/2010-12-03/u-s-added-39-000-jobs-in-november-unemp...
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