US unemployment rate declines to 7.7%

The US government said Friday that employment growth was much better than expected in November, with the United States economy adding 146,000 jobs, according to New York Times. The jobless rate was the lowest since December 2008. Economists had estimated the Labor Department would report that only 86,000 jobs were created in November and that the rate of unemployment would remain flat at 7.9%. The strength of the numbers was all the more notable because many experts expected a muted jobs performance because of the impact of Hurricane Sandy, which hit the East Coast on October 31. The Labor Department revised its job growth figures for October and September downward. Still, November’s net growth in payrolls was below the average of 170,000 new jobs added monthly over the course of August, September and October. Average hourly earnings in November rose 0.2%, the report showed. Manufacturing jobs fell by 7,000. Economists have been closely watching the sector amid weak demand from Europe and signs that businesses in the United States are holding off on spending ahead of the fiscal impasse in Washington.