Employers Added 94,000 Jobs in November!

The Labor Department stated that the economy added 94,000 jobs in the month of November. This has eased fears of recession, but it also may add more rate cuts from the Federal Reserve. The rise in payrolls was not very strong, but it also did not disappoint anyone. The labor market is not doing much even as the deteriorating housing sector continues to drag on construction and manufacturing jobs. Economists had raised their estimates for today’s report after a separate employment survey showed an unexpected surge in November payrolls. But the Labor Department’s report, considered a bellwether for the broader economy, showed more modest gains, with a jump in service-sector and government jobs but declines in factory and construction payrolls. Average hourly wages among rank-and-file workers — about four-fifths of the work force — ticked up 8 cents, to $17.63, keeping wage growth only slightly ahead of rising prices. After taking inflation into account, wages have fallen over the last year, from roughly $17.69 last November. In the current expansion, the wage gains have been weaker than in other expansions. In the past four years, the hourly wage has risen just a penny. The unemployment rate held steady at 4.7 percent for the third consecutive month. October’s payroll gain was revised up slightly, the Labor Department sharply dropped its estimate for job growth in September to 44,000, from an original estimate of 110,000 jobs. That makes September the worst month for job growth since early 2004.


http://www.nytimes.com/2007/12/07/business/07cnd-econ.html?_r=1&hp&oref=slogin