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US unemployment rate hits seven-month high | US unemployment rate hits seven-month high |
(40 minutes later) | |
The US unemployment rate rose to 9.8% in November, the highest rate since April, the US Labor Department has said, raising fears about the strength of the country's economic recovery. | The US unemployment rate rose to 9.8% in November, the highest rate since April, the US Labor Department has said, raising fears about the strength of the country's economic recovery. |
Just 39,000 jobs were created last month, below analysts' expectations. In October, 172,000 jobs were created. | Just 39,000 jobs were created last month, below analysts' expectations. In October, 172,000 jobs were created. |
Stocks markets fell sharply after the figures were published. | |
Analysts are concerned that the levels of high unemployment in the US are undermining the economy's recovery. | Analysts are concerned that the levels of high unemployment in the US are undermining the economy's recovery. |
Wall Street opened lower, while the UK's FTSE 100, France's Cac 40 and Germany's Dax share indexes all moved sharply into negative territory on the back of the figures. | |
The jobs number is a first estimate, and could be revised in the coming months. | The jobs number is a first estimate, and could be revised in the coming months. |
'Very disappointing' | 'Very disappointing' |
The Labor Department said 15.1 million people were now unemployed in the US, equating to a rate of 9.8%. This is an increase from the 9.6% rate recorded in the previous three months. | The Labor Department said 15.1 million people were now unemployed in the US, equating to a rate of 9.8%. This is an increase from the 9.6% rate recorded in the previous three months. |
Jobs were created in the business services, healthcare and mining sectors, but job numbers in the retail and manufacturing sectors fell. | Jobs were created in the business services, healthcare and mining sectors, but job numbers in the retail and manufacturing sectors fell. |
Analysts were distinctly underwhelmed by the jobs figures. | Analysts were distinctly underwhelmed by the jobs figures. |
"Obviously it's a surprise - it's very disappointing. We were looking for something much, much higher," said Bernard Baumohl at the Economic Outlook Group. | |
However, he said the number of new jobs would probably be revised "substantially up" next month, in line with recent job figures. | However, he said the number of new jobs would probably be revised "substantially up" next month, in line with recent job figures. |
Others were less willing to see a silver lining. | |
Paul Dales at Capital Economics called the job figures a "painful reality check" for those hoping that a meaningful recovery was already underway. | |
"The truth is that the economy is going nowhere at a time when companies are not willing to boost hiring," he said. | |
Stimulus measures | Stimulus measures |
The US economy grew by an annualised rate of 2.5% between July and September. | |
At the beginning of last month, the US Federal Reserve, spurred by weak economic growth, announced a stimulus programme to pump $600bn (£382bn) into the economy. | At the beginning of last month, the US Federal Reserve, spurred by weak economic growth, announced a stimulus programme to pump $600bn (£382bn) into the economy. |
High unemployment and a weak housing market in particular are hampering growth, analysts say. | High unemployment and a weak housing market in particular are hampering growth, analysts say. |
This is the second major stimulus package the Fed has introduced to try to kick-start the recovery, having pumped $1.75tn into the economy during the downturn. | This is the second major stimulus package the Fed has introduced to try to kick-start the recovery, having pumped $1.75tn into the economy during the downturn. |