U.S. economy adds 146,000 jobs, rate falls to 7.7 percent
WASHINGTON (AP) - 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 Friday offered a mixed picture of 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 it 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.
The report "is something of a mixed bag but, on balance, it's a positive," said Paul Ashworth, an economist at Capital Economics.
Sandy's effect on the figures was much smaller many analysts had predicted. The government noted that as long as employees worked at least one day during a pay period - two weeks for most people - its survey would have counted them as employed.
Still, 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 for any month in nearly two years. These workers were still counted as employed.
Investors appeared pleased with the report. The Dow Jones industrial average gained 56 points in the first hour of trading.
Since July, the economy has added an average of 158,000 jobs a month. That's a modest pickup from 146,000 average in the first six months of the year.
The job growth suggests that most employers aren't yet delaying hiring because of the "fiscal cliff." That's the combination of sharp tax increases and spending cuts set to take effect next year unless the White House and Congress reach a budget deal before then.
There is "no obvious impact from the looming fiscal cliff yet," Ashworth added, "but it could still have a greater effect on December's figures."
In November, retailers added 53,000 positions. 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.
Ashworth noted that hiring by companies was actually better in October than the government first thought. The overall job figures were revised lower that month because governments cut about 35,000 more jobs than first estimated.
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.
The Labor Department's report Friday offered a mixed picture of 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 it 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.
The report "is something of a mixed bag but, on balance, it's a positive," said Paul Ashworth, an economist at Capital Economics.
Sandy's effect on the figures was much smaller many analysts had predicted. The government noted that as long as employees worked at least one day during a pay period - two weeks for most people - its survey would have counted them as employed.
Still, 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 for any month in nearly two years. These workers were still counted as employed.
Investors appeared pleased with the report. The Dow Jones industrial average gained 56 points in the first hour of trading.
Since July, the economy has added an average of 158,000 jobs a month. That's a modest pickup from 146,000 average in the first six months of the year.
The job growth suggests that most employers aren't yet delaying hiring because of the "fiscal cliff." That's the combination of sharp tax increases and spending cuts set to take effect next year unless the White House and Congress reach a budget deal before then.
There is "no obvious impact from the looming fiscal cliff yet," Ashworth added, "but it could still have a greater effect on December's figures."
In November, retailers added 53,000 positions. 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.
Ashworth noted that hiring by companies was actually better in October than the government first thought. The overall job figures were revised lower that month because governments cut about 35,000 more jobs than first estimated.
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.
So how many of these "146,000" jobs were/are full time 40 hours per week, family wage with benefits jobs? Probably not very many. Â
One big reason is because since the 're-election'Â of obozo, 300,000 people have simply given up and dropped out of the labor market and are no longer counted, hence the rate comes down.
But it will only get better come January 1, 2013 when some more provisions of obozocare start kicking in, when more and more people suddenly find themselves under-employed or part-time with no benefits, if not out right layed off. The rate will tick back up.
 But this will be nothing compared to January 1, 2014 when the unemployment rate will rise .50 to 1.0% percentage points when obozocare is fully implemented.
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And lets not forget those pesky revisions that will come after the holidays.
If you read or listened to the whole report, the lower rate was because of more people not looking for jobs. Â If you figure this in, the rate is over eight percent. Â But, by God, we can't make obama look bad can we? Â One thing we all know, but the democrats won't admit, is that most of obama's voters didn't help the rate. Â They have no intention of going to work. Â obama told them they didn't have to if they voted for him.
 @boomer Interestingly, I was just perusing NumbersUSA site and they published a new article on exactly that same subject (the official rate vs. real jobs situation).
Â
Unemployment rate down, but fewer Americans are working as high immigration continues
By Chris Chmielenski, Friday, December 7, 2012, 3:27 PM EST
https://www.numbersusa.com/content/nusablog/cchmielenski/december-7-2012/unemployment-rate-down-fewer-americans-are-working-high-immigr
"""""Â But the government said employers added 49,000 fewer jobs in October and September than it initially estimated."""""
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What a scam each and every month the rosy/optimistic/dishonest numbers are in big headlines followed by corrections buried somewhere within an article.