This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Job Growth Cools Again

The pace of job growth slowed markedly in November from the prior month, in a troubling sign for retailers ahead of the all-important holiday shopping season.

Nonfarm payrolls increased by just 112,000 in November, well below forecasts for 200,000 jobs to be created. The months of October and September were also revised lower by a combined 54,000 but the unemployment rate ticked down to 5.4%.

"October now clearly stands as an outlier, partly thanks to the hurricane effect and partly, we think, to plain old sampling error," said Ian Shepherdson, chief economist at High Frequency Economics.

The Labor Department originally reported that 337,000 jobs were added in October, with a large portion coming from the construction sector after four hurricanes swept through the southern U.S.. On Friday, it revised down that amount to 303,000.

The details of November's report were also disappointing. Average hourly earnings rose a meager 0.1% and the average workweek fell by a tenth of an hour to 33.7 hours. Total hours worked in the economy dropped by 0.2%.

"The November numbers are in line with the message from the summer's drop in the help wanted index, which unfortunately points to another month or two of similar numbers," Shepherdson said.

Although seasonal factors were "less friendly" this year than last, this was offset by a larger estimate for job creation by new businesses "so most of the damage is in the core numbers," he added.

Peter Morici, a business professor at the University of Maryland, said declining auto sales, which account for 4% of the U.S. economy, are weighing down jobs creation in the vehicle assembly and autoparts sector. General Motors (GM) and Ford (F) both announced production cuts this week.

Manufacturing firms lost 5,000 jobs in November, the third straight decline while construction added 11,000 jobs.

The services sector added 104,000 jobs after 241,000 in October. Retail firms shed 16,000 jobs. Professional and business services added 28,000, including 9,000 in temporary help agencies.

A separate survey of households showed employment up by 483,000 while unemployment fell by 45,000 to 8.027 million. Still, most economists believe the payroll survey is more reliable.

Despite disappointing Wall Street, the latest employment data aren't likely to put the Federal Reserve on hold at the next meeting on Dec. 14. Most traders expect the central bank to raise interest rates for a fifth time this month.

The 10-year Treasury note rallied on the news, while the dollar fell. The report had a mixed impact on stock futures, as blue chips lost early gains while techs remained sharply higher.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,984.19 +64.60 0.38%
S&P 500 1,985.64 +4.04 0.20%
NASDAQ 4,526.7180 -0.7960 -0.02%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs