The U.S. unemployment rate dropped from 7.3 percent to 7 percent in November on the gain of 203,000 jobs, the Labor Department said Friday.
The drop was significantly larger than expected. Economists had predicted a drop to 7.2 percent.
The good news will likely jolt Wall Street, where investors are wary that positive economic news puts the U.S. Federal Reserve closer to pulling back on their $85 billion per month asset purchasing program.
"This week's data ... add to the sense that the Fed will be itching to pull the trigger to take the first shot at killing off its huge $85 billion per month asset purchase program at its December meeting," said Markit Economics Chief Economist Chris Williamson.
The Fed might "at least to fire a warning shot that the time has come to start slowly bringing about some normalization of policy. However, the most likely outcome still looks like a deferment of any decisions until the new year," Williamson said.
In the monthly report, October's jobs gain was revised lower, from 204,000 to what Williamson called "a still-buoyant 200,000."
An upward revision for September offset that loss with the department adding 12,000 more jobs to its September estimate, bringing the total for September from 163,000 to 175,000.
The department said the civilian workforce rose in November, climbing by 455,000 after dropping by 720,000 in October. However, the number of long-term unemployed -- those out of work for 27 weeks or more -- was essentially unchanged in the month, holding at 4.1 million, which is a staggering 37.3 percent of the unemployed.
The department said federal jobs continued to decline, dropping by 7,000 in November, consistent with the 92,000 federal jobs lost in the past 12 months.
The gains included 35,000 new jobs in professional and business services, 31,000 in transportation and warehousing, 28,000 in healthcare, 27,000 in manufacturing and 22,000 in retail. Leisure and hospitality gained 18,000 jobs in the month, while construction added 17,000, the department said.
Copyright 2013 United Press International, Inc. (UPI). Any reproduction, republication, redistribution and/or modification of any UPI content is expressly prohibited without UPI's prior written consent.
Original headline: Unemployment rate drops to 7 percent
Most Popular Stories
- Americans Still Pessimistic Despite Economic Growth
- Apple to Unveil New Items on Sept. 9
- Friends Followed Similar Paths to Violent Jihad
- Axxis Solutions Appoints Benites as CEO
- Obama Puts Ukraine Violence on Russia
- Janet Yellen's Assets Grew by 8 Percent in 2013
- Hillary Clinton Breaks Silence on Ferguson
- California Moves Toward Ban on Plastic Bags
- Petit Retires 46 Batters in a Row, MLB Record
- Identity Thieves Prey on Job Seekers