The US unemployment rate fell to 5.9 per cent in November while nonfarm payrolls rose by a disappointing 57,000.
Payrolls rose for the fourth month in a row, the Labor Department reported today. Grocery store strikes reduced the level of employment by about 26,000 to 31,000 jobs in November after adding about 15,000 to 20,000 in October, the department said.
In October, nonfarm payrolls grew by a revised 137,000, up from the previous estimate of 126,000. Over the past four months, 328,000 net jobs have been created.
In November, 54.7 per cent of 278 industries added to their payrolls, up from 53.6 per cent in October. Economists expected payroll growth of about 140,000 and expected the unemployment rate to remain at 6 per cent.
At 5.9 per cent, the jobless rate is the lowest since 5.8 per cent in March. The report continued to show signs that businesses are adding hours as well as jobs. The average workweek rose by six minutes to 33.9 hours, while the factory workweek rose by 12 minutes.
Aggregate hours worked in the economy rose by 0.2 percentage points. Average hourly earnings rose 0.1 percent to $15.46. In the past year, hourly earnings are up 2.1 per cent.
Job losses in manufacturing have slowed in recent months, with 17,000 fewer jobs in November after job losses averaging 53,000 earlier. In November, payrolls in durable goods industries were flat.
Services producing industries added 64,000 workers, including 25,000 in health care and 21,000 in temporary help services. Retail lost 28,000, due to the grocery strikes.
The household survey shows 8.7 million unemployed workers in November, down from 8.8 million in October. Employment in the household survey rose by 589,000. Of the 8.7 million officially classified as unemployed, 23.7 per cent or 2 million, have been out of work longer than six months.