Jobs report: Economy added 146K jobs in November

CBS/iStockphoto.com

WASHINGTON The U.S. economy added 146,000 jobs in November and the unemployment rate fell to 7.7 percent, the lowest since December 2008. The government said Superstorm Sandy had only a minimal effect on the figures.

The Labor Department's report on Friday offered a mixed picture for the economy.

Hiring remained steady during the storm and in the face of looming tax increases. But the government said employers added 49,000 fewer jobs in October and September than initially estimated.

And the unemployment rate fell to a four-year low in November from 7.9 percent in October mostly because more people stopped looking for work and weren't counted as unemployed.

There were signs that the storm disrupted economic activity. Construction employment dropped 20,000. And weather prevented 369,000 people from getting to work -- the most in almost two years. They were still counted as employed.

Stock futures jumped after the report. Dow Jones industrial average futures were down 20 points in the minutes before the report came out at 8:30 a.m., and just after were up 70 points.

As money moved into stocks, it moved out of safer bonds. The yield on the benchmark 10-year U.S. Treasury note, which moves opposite the price, rose to 1.63 percent from 1.58 percent just before the report.

Since July, the economy has added an average of 158,000 jobs a month. That's a modest pickup from 146,000 in the first six months of the year.

The increase suggests employers are not yet delaying hiring decisions because of the "fiscal cliff." That's the combination of sharp tax increases and spending cuts that are set to take effect next year without a budget deal.

Retailers added 53,000 positions while temporary help companies added 18,000 and education and health care also gained 18,000.

Auto manufacturers added nearly 10,000 jobs.

Still, overall manufacturing jobs fell 7,000. That was pushed down by a loss of 12,000 jobs in food manufacturing that likely reflects the layoff of workers at Hostess.

Sandy forced restaurants, retailers and other businesses to close in late October and early November in 24 states, particularly in the Northeast.

The U.S. grew at a solid 2.7 percent annual rate in the July-September quarter. But many economists say growth is slowing to a 1.5 percent rate in the October-December quarter, largely because of the storm and threat of the fiscal cliff. That's not enough growth to lower the unemployment rate.

The storm held back consumer spending and income, which drive economic growth. Consumer spending declined in October and work interruptions caused by Sandy reduced wages and salaries that month by about $18 billion at an annual rate, the government said.

Still, many say economic growth could accelerate next year if the fiscal cliff is avoided. The economy is also expected to get a boost from efforts to rebuild in the Northeast after the storm.

Editor's note: This Associated Press article was posted minutes after the Labor Department released the October employment report. It has since been replaced by a staff-written report. You can find the latest report and reader comments here.

[karishore]

THIS IS bogus. What happened is the Unemployment Extentions RAN OUT, dropping untold thousands! This, in turn, causes many to NOT continue filing their weekly unemployment, resulting in the false appearance to have returned to work. I continued to file, even though I received $0. I was sent letters telling me it was not necessary for me to continue to file. Still do. But, many have stopped creating a drop in unemployment and a false number of employed. MORE U.S. CITIZENS (around 45 million) are on SNAP (government food programa) than any other time in history. This is currrent costing U.S. citizens apx $72 BILLION dollars as opposed to $30 billion from 4 years ago. (do your searches on this!) Also, to add, JP Morgan (which owns the EBT machines/cards) received, so far $560,492,596.02, according to the Government Accountability Institute. AGAIN, do your searches on this. "Yeah, right, we're all doing so well now." "NOT."

[karishore]

THIS IS bogus. What happened is the Unemployment Extentions RAN OUT, dropping untold thousands! This, in turn, causes many to NOT continue filing their weekly unemployment, resulting in the false appearance to have returned to work. I continued to file, even though I received $0. I was sent letters telling me it was not necessary for me to continue to file. Still do. But, many have stopped creating a drop in unemployment and a false number of employed. MORE U.S. CITIZENS (around 45 million) are on SNAP (government food programa) than any other time in history. This is currrent costing U.S. citizens apx $72 BILLION dollars as apposed to $30 billion from 4 years ago. (do your searches on this!) Also, to add, JP Morgan (which owns the EBT machines/cards) received, so far $560,492,596.02, according to the Government Accountability Institute. AGAIN, do your searches on this. "Yeah, right, we're all doing so well now." "NOT."

[freedomfighter47]

"Would you like fries with that Big Mac" CBS is Fox news on steriods

[ammo17]

these are all part time holiday hirings,ups,fedex and retail store hirings. what company would do any full time employment in these economic times when the slugs in d.c. are not sure of what the future holds for this country.the unemployment rates are going to bounce up in january as a golf ball hitting a concete sidewalk.

[manonstreet]

Its funny the rate is based on people on the insurance program is obserd first when it runs out your no loger counted but have no job. means the number is worthless as an indicator of unemployment period. second when all the people effecte from sandy are not counted but collecting also makes the nuber worthless. also cooking the death rate on the number makes the number worthless. It just propaganda number. for fools to look at and change the conversation when they want like a magician smole and mirrors.

[tmonta67]

Ok, let's all take a page out of "Economics for Idiots":

The jobless rate can go down with fewer jobs added if at the same time, some are leaving the work force, as in people retiring....it's actually a little more complicated than that, but we'll keep it simple.

[thebes42]

I call BS.
The real unemployment rate, figured as it was in the early 80s during our the great recession, is over 24%.
That politicians can play games with their number counting does nothing to put food on American tables.

[jmn122736]

apufan_banned replies:
October 2012
Employed: 143,384

November 2012
Employed: 143,262

Nice job growth!!!!!! Losers
---------------------------------------------

This is typical of deliberately misleading comments by posters like apufan_banned.
In fact there were millions employed in October and November, not the amount claimed by apufan

A more honest and truthful statement would have read:
October 2012
ADDED: 143,384

November 2012
ADDED: 143,262

[luadda22]

The rate went down? Yet directly from the BLS report "The unemployment rate edged down to 7.7 percent in November. The number of unemployed
persons, at 12.0 million, changed little".

The rate went down yet the number of persons unemployed remained the same??

The unemployment rate in Nov. 2011 was 8.6% with a participation rate of 63.9. Yet the participation rate in Nov 2012 is 63.6 and the unemployment is 7.7%? Fewer people working now and the unemployment rate is almost a full perentage point lower?

Oh well.

[johnlockesghost]

Meaningless jibber-jabber unless the report contains the number of under-employed.