4 December 2009

U.S. jobs market picking up

The following is excerpted from today's edition of "globeandmail.com".

The U.S. unemployment rate unexpectedly fell to 10 per cent in November as employers cut the smallest number of jobs since the recession began. The better-than-expected job figures are a rare note of encouraging news for the labour market.

Still, the respite may be temporary. Many economists expect the unemployment rate to climb into next year as the economy struggles to generate enough jobs for the 15.4 million people out of work.

The economy shed 11,000 jobs last month, an improvement from October's revised total of 111,000, the Labour Department said Friday. That's much better than the 130,000 Wall Street economists expected.

The unemployment rate fell to 10 per cent from 10.2 per cent in October, where economists expected it to remain....

There was other positive news in the report. The average work week rose to 33.2 hours, from a record low of 33 hours. Economists expect employers will increase hours for their current workers before hiring new ones....

The unemployment rate fell because the number of jobless Americans dropped by 325,000 to 15.4 million. The jobless rate is calculated from a survey of households, while the number of jobs lost or gain is calculated from a separate survey of business and government establishments. The two surveys can sometimes vary....

The participation rate, or the percentage of the population employed or looking for work, fell to 65 per cent, the lowest since the recession began. Once laid-off people stop hunting for jobs, they are no longer counted in the unemployment rate.

The economy has now lost jobs for 23 straight months, but the small decline in November indicates the nation could begin generating jobs soon....