By Greg Robb, MarketWatch
The story was fixed to reflect the correct number for September’s revision.
WASHINGTON (MarketWatch) — The U.S. economy added jobs at a much slower pace in November than in October, suggesting that the economy will continue to struggle in coming months.
Nonfarm payrolls rose by 39,000 in November, far lower than the 155,000 gain expected by economists surveyed by MarketWatch and the upwardly revised figure of 172,000 jobs gained in October.
The unemployment rate unexpectedly rose to 9.8% in November from 9.6% in October according to a separate survey of 60,000 households. Economists had been expecting the unemployment rate to remain steady. This is the highest unemployment rate since April.
The report is sure to upset financial markets, and stock futures (SPZ10 1,216, -6.70, -0.55%) dropped quickly after the report. Economists had thought they had detected the economy picking up steam.
Unemployment increased by 276,000 to 15.1 million for November, while employment fell, dipping 173,000 to 138.9 million.
Of the 15.1 million persons unemployed in November, 41.9% had been jobless for 27 weeks or more.
This statistic has alarmed Federal Reserve officials and was one key factor in their decision to launch a controversial $600 billion bond-purchase plan last month to try to give the economy a push.
The payrolls count in September and October was revised higher by a cumulative 38,000. Payrolls fell a revised 24,000 in September and rose by 172,000 in October.
An alternative measure of the unemployment rate, which includes discouraged workers and those forced to work part-time because of the weak economy, held steady at 17%.
Among all industries 52% were hiring, down from 58% in October
Retail sales lost 28,000 jobs in November. This caught economists by surprise. Many had expected shops to add workers for the holiday season.
The factory sector lost 13,000 jobs.
Temporary help services and health care added jobs.
The government sector shed 11,000 jobs in November.
The average workweek was steady at 34.3 hours.
Average hourly earnings in September were virtually unchanged at $22.75. Economists had been expecting a 0.2% gain. Earnings are up 1.6% in the past year.
