The U.S. economy added 203,000 jobs in November, according to preliminary data from the U.S. Department of Labor, and the official unemployment rate fell to 7%. It was 7.3% the previous month.
November marked the 45th consecutive month of job growth, a period in which 8.1 million jobs have been created, including 2.3 million new private-sector jobs in the past 12 months.
In November, the manufacturing sector added 27,000 new jobs, and retailers, who were gearing up for the holiday shopping season, added 13,500 jobs.
Meanwhile, September and October payroll numbers were revised upward by a combined 8,000 jobs.
“Today’s solid jobs report is welcome news that the economy is continuing to shake off the recession and adding jobs,” said Matthew Shay, president and CEO of the National Retail Federation.
Economists say the U.S. economy must create at least 150,000 new jobs each month just to keep up with changes in population and the labor market, and it must create about 250,000 to quickly bring down the unemployment rate.
November was the second consecutive month in which job creation exceeded 200,000, while third quarter GDP rose by an impressive 3.6% due mainly to the buildup of inventories. Also in November, consumer purchasing power increased as average earnings rose by 4 cents to $25.15 per hour.
Since the unemployment rate is creeping closer to the 6.5% threshold the Fed has established for discussing interest rate hikes, some economists believe the Fed could begin the long-anticipated tapering of central bank bond purchases as early as this month.
