Unemployment Rate Rises on Weak Job Creation

[The Northerner]

(By Lucia Mutikani): U.S. employment increased far less than expected in November and the jobless rate jumped to a seven-month high of 9.8 percent, dampening hopes for a self-sustaining economic recovery.

Nonfarm payrolls rose 39,000, with private hiring gaining only 50,000, the Labor Department said. However, overall employment for September and October was revised to show 38,000 more jobs than previously estimated.

Economists had expected payrolls to increase 140,000 last month and the unemployment rate to be unchanged at 9.6 percent.

A raft of recent data, including retail sales, had raised optimism the economy was accelerating after hitting a soft patch in the summer.

The unemployment rate bumped up in November as some discouraged workers probably rejoined the labor force. The separate household survey also showed a decline in employment.

The weak employment rate will embolden the Federal Reserve to fully implement its controversial $600 billion program to buy long-term government debt. The purchases are designed to push already low interest rates down further to stimulate demand.

Read more: http://www.huffingtonpost.com/2010/12/03/unemployment-rate-october-2010_n_791498.html