Job Growth Beats Expectations in November

By Toni Vranjes

December 7, 2012

Although economists expected Hurricane Sandy to lower job creation in November, the government reported today that it didn’t have a major impact on the employment numbers. For that reason, job growth last month — which totaled 146,000 — was higher than predicted.

The employment gains were spread across many areas, including retail trade, professional and business services, leisure and hospitality, health care, wholesale trade, and information employment. Total job growth beat economists’ expectations of 85,000 new jobs.

In November, the unemployment rate fell from 7.9 percent to 7.7 percent. However, the drop occurred because the labor force declined.

To continue the economy’s momentum, the Obama Administration emphasizes the need for an extension of middle-class tax cuts. Unless President Obama’s proposal becomes law, the typical middle-class family would face a $2,200 income-tax hike in January, economist Alan Krueger wrote on the White House blog.

The president is also urging Congress to approve parts of the American Jobs Act, which includes infrastructure spending, and financial assistance to state and local governments.

“It is critical that we continue the policies that are building an economy that works for the middle class as we dig our way out of the deep hole that was caused by the severe recession that began in December 2007,” wrote Krueger, President Obama’s chief economist.

Tags: , , ,

Leave a Reply