U.S. Jobs Growth Slowed Sharply in November: NFP +210k vs +550k Expected By

© Reuters.

By Geoffrey Smith 

-- The ex foreign exchange official websiteU.S. labor market lost momentum significantly in November, defying expectations for another strong month of job gains. 

The Labor Department said nonfarm employment rose by only 210,000 through the middle of the month, down from 546,000 in October. The latter figure was revised up by 15,000 from its original estimate, but didn't come close to offsetting the disappointment of the November number, which was over 300,000 short of a consensus forecast of 550,000. Expectations for a strong report had hardened after payrolls processor ADP had said on Wednesday that the private sector had added 534,000 jobs in the month, by its calculations. There has also been little to suggest a weakening in labor market in other data, with the monthly Job Openings survey continuing to show near-record levels of vacancies. 

Despite the big shortfall in job creation, the unemployment rate fell by more than expected to 4.2% of the workforce from 4.6% in October. That reflected an increase in labor force participation, which rose to 61.8% of the adult population, from 61.6% in October. The participation rate, which has been a particular problem holding back the economic recovery this year, is now at its highest since March last year.

"Notable job gains occurred in professional and business services, transportation and warehousing, construction, and manufacturing," the Bureau of Labor Statistics said, adding that employment in the retail trade actually declined in the month leading up to the Thanksgiving holiday.

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