This morning's employment report from the Department of Labor shows hiring picked up in November and unemployment declined. Employers added 120,000 jobs in November, marking a pickup in the hiring rate from the previous month. This led to a decline in the unemployment rate to 8.6%. Investors expected the unemployment rate to remain at 9.0%.
The report states employment continued to trend up in retail trade, leisure and hospitality, professional and business services, and health care. Government employment continued to trend down. "In November, the unemployment rate declined by 0.4 percentage point to 8.6%. From April through October, the rate held in a narrow range from 9.0% to 9.2%," it states. "The number of unemployed persons, at 13.3 million, was down by 594,000 in November. The labor force, which is the sum of the unemployed and employed, was down by a little more than half that amount."
Juli says: Overall, the data is positive as focus is on the decline in the unemployment rate. But it also suggests that some people have simply given up on finding a job. Markets have had a muted response to the data so far.