Click for St. Louis, Missouri Forecast

// a href = ./ // St Louis News, Weather, Sports, The Big 550 AM, St Louis Traffic, Breaking News in St Louis

 
 
 

US UNEMPLOYMENT FALLS TO 7 PCT. ON 203K JOBS ADDED

Rate this item
(0 votes)
US UNEMPLOYMENT FALLS TO 7 PCT. ON 203K JOBS ADDED AP

WASHINGTON (AP) — A fourth straight month of solid hiring cut the U.S. unemployment rate in November to a five-year low of 7 percent. The gains in the job market could spur greater economic growth.

The Labor Department said Friday that employers added 203,000 jobs, nearly matching October's revised gain of 200,000. The job gains helped lower the unemployment rate from 7.3 percent in October.

The strengthening job market is likely to fuel speculation that the Federal Reserve may scale back its bond purchases when it meets later this month.

The economy has now generated an average of 204,000 jobs from August through November. That's up from 159,000 a month from April through July.

Many of the November job gains were in higher-paying industries. Manufacturers added 27,000 positions, the most since March 2012. Construction firms gained 17,000. The two industries have created a combined 113,000 jobs in the past four months.

Another month of robust hiring follows other positive economic news. The economy expanded at an annual rate of 3.6 percent in the July-September quarter, the fastest growth since early 2012, the government said Wednesday.

Still, nearly half that gain came from businesses building their stockpiles. Consumer spending grew at the slowest pace since late 2009.

Greater hiring could support healthier spending. Job growth has a dominant influence over much of the economy. If hiring continues at the current pace, a virtuous cycle starts to build. More jobs usually lead to higher wages, more spending and faster growth.

But more higher-paying jobs are also necessary. Roughly half the jobs that were added in the six months through October were in four low-wage industries: retail; hotels, restaurants and entertainment; temp jobs; and home health care workers.

The Fed has pegged its stimulus efforts to the unemployment rate. Chairman Ben Bernanke has said the Fed will ease its monthly purchases of $85 billion in bonds once hiring has improved consistently. The bond purchases have kept long-term interest rates low.

The recent economic upturn has been surprising. Many economists expected the government shutdown in October to hobble growth. Yet the economy motored along without much interruption, according to several government and industry reports.

Early reports on holiday shopping have been disappointing. The National Retail Federation said sales during the Thanksgiving weekend — probably the most important stretch for retailers — fell for the first time since the group began keeping track in 2006.

Consumers are willing to spend on big-ticket items. Autos sold in November at their best pace in seven years, according to Autodata Corp. New-home sales in October bounced back from a summer downturn.

___

AP Economics Writer Josh Boak contributed to this report.

___

Follow Chris Rugaber on Twitter at http://Twitter.com/ChrisRugaber.

Last modified on Friday, 06 December 2013 08:11

Latest News

  • 1
  • 2
  • 3
  • 4
  • 5
  • 6
  • 7
  • 8
Prev Next

Peabody Energy Reports First Quarter Loss

 ST. LOUIS (AP) - Coal miner Peabody Energy Corp. says its first-quarter loss more than doubled on weak prices. The results are worse than Wall Street expected and sha...

MO House panel OKs student transfer bill

MO House panel OKs student transfer bill

   JEFFERSON CITY, Mo. (AP) - A Missouri House committee has advanced legislation revising a law requiring unaccredited school districts to pay the costs when students...

Spending bill signed by Nixon includes $2M for Normandy School Dist.

Spending bill signed by Nixon includes $2M for Normandy…

   JEFFERSON CITY, Mo. (AP) - Missouri Governor Jay Nixon has signed a mid-year spending bill with funding for social services, education and a financially troubled St...

UPDATE: Missing So. County teen home safe

UPDATE: Missing So. County teen home safe

   A South County teen who had been the subject of an Endangered Person Advisory is home safe.      St. Louis County Police had issued the advisory ...

Railroad work delays drivers in Kirkwood

Railroad work delays drivers in Kirkwood

   Drivers on Kirkwood Road are used to waiting for the train, but that wait is a little longer today.      Union Pacific crews are making a critica...

GOP lawmakers introduce term limits bill

GOP lawmakers introduce term limits bill

   SPRINGFIELD, Ill. (AP) - Illinois Republican leaders have introduced a proposal that would force statewide officers to serve a two-term limit.    Sena...

Kane leads Blackhawks past Blues, 4-3 in OT

Kane leads Blackhawks past Blues, 4-3 in OT

   CHICAGO (AP) - Patrick Kane scored his second goal of the game at 11:17 of overtime, and the Chicago Blackhawks beat the St. Louis Blues 4-3 on Wednesday night to e...

SLFD battles two-alarm home fire

SLFD battles two-alarm home fire

   Fire fighters are working to keep a two-alarm fire in north St. Louis from spreading to adjacent homes.      The blaze broke out in 5000 block of...

© 2013 KTRS All Rights Reserved