Finally Some Good Economic News: Jobs Up
Though employers added 94,000 jobs, the numbers still signal a slowing economy.
Dec. 7, 2007 — -- As housing prices fall, energy prices rise and credit markets remain tighter than normal, there are some signs that the economy is weathering through this turbulent period.
This morning, the government reported that employers hired an additional 94,000 workers in November and that the unemployment remained unchanged at 4.7 percent.
The total number of jobs created was slightly more than expected and is good news at a time when markets, analysts, investors, economists and everyone else have worried about the nation's economy.
The Bureau of Labor Statistics also reported that hourly wages rose by 8 cents in November and now stands at $17.63. Average weekly earnings increased by a strong 0.5 percent.
So while Americans worry about the price of their home and the value of their 401(k)s and pension plans, at least they still have their jobs. That provides a strong dose of comfort during these challenging economic times.
The question now is how much will consumers spend of their salaries during the holiday shopping season.
Where did the jobs come from and where were they lost?
Continuing recent trends, most of the job growth was in the service sector: professional and business services added 30,000, retail an additional 24,000 and leisure and hospitality added 26,000.
Not surprising given the state of the housing market, jobs were lost in construction — down by 24,000 — and financial activities, which include mortgage lending and other credit jobs, lost 13,000. There were also some losses in manufacturing companies that manufacturer wood products and nonmetallic mineral products like concrete and glass.
The nonfarm payrolls number is a measure of the number of new jobs created by the private sector during the month. It is based on a survey of about 160,000 businesses and government agencies. The national unemployment rate comes from a separate survey of households.
So what's does all this mean for you?
This all-important economic report comes a few days before the Federal Reserve meets to decide whether or not to lower the Federal Funds interest rate.
