Updated from 8:41 a.m. EST
The U.S. economy added only 18,000 jobs in December, falling well short of what was anticipated, and the unemployment rate unexpectedly jumped to 5%.
On average, economists had predicted that around 70,000 new jobs were created last month. The consensus estimate for the jobless rate was 4.8%, compared with 4.7% in November.
Rate Cuts Definite, Recession Likely |
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Growth in several service industries, including professional and technical services, health care and food, was largely offset by losses in construction and manufacturing, the Labor Department said Friday.
The retail trade and information industries also saw a contraction in employment.
Revisions to the prior two months were fairly minor. Last month, the government said 94,000 workers were added in November, and now it says the number was 115,000. October's payrolls were altered downward to 159,000 from 170,000 previously reported.
Average hourly earnings in December rose by 7 cents, or 0.4%.
The jobs report said professional and technical services gained 33,000 positions during the month and 322,000 over the course of the year. Health care created 28,000 jobs last month and 381,000 during the entire year.
Food services was the next strongest, rising by 27,000 workers for the month and 304,000 in 2007. Mines hired an additional 5,000 employees in December and 36,000 for the year.
At the same time, the construction sector lost 49,000 jobs last month, and since its peak in September 2006, has given up 236,000 positions, largely because of weakness in residential building.
Chris Nichols
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