By LUCA DILEO And JEFFREY SPARSHOTT
The U.S. economy added fewer jobs than expected in November and the unemployment rate rose, dashing hopes that the recovery is gaining momentum.
The U.S. economy added far fewer jobs than expected in November while the unemployment rate rose to 9.8%, the highest since April, underlining continued weakness in the labor market. Evan Newmark, Dennis Berman, Steve Russolillo, Phil Izzo and Sudeep Reddy discuss.
Nonfarm payrolls rose by 39,000 last month as private-sector employers added only 50,000 jobs, the Labor Department said Friday. The jobless rate, obtained from a separate household survey, unexpectedly rose to 9.8%, the highest level since April.
Economists surveyed by Dow Jones Newswires had forecast payrolls would rise by 144,000 and that the unemployment rate would remain unchanged at 9.6%.
The previous two months were revised upward, with October job gains at 172,000 from a previous estimate of 151,000, but that didn't help an overall negative report. The weaker-than-expected data caused the U.S. dollar to weaken against major currencies. U.S. stocks fell while Treasury prices rose amid the clear sign of weakness in the economy.
A recent pickup in consumer spending and strong manufacturing surveys had offered hope the recovery might be gaining strength. But the weakness in the jobs market in November, 17 months after the recession ended, is a stark reminder that the path to recovery is likely to continue to be slow and painful.
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