This Day On The Street
Continue to site right-arrow
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!

U.S. Job Loss Slows

Stocks in this article: AET AMAT AA BA

WASHINGTON ( TheStreet) -- In an upside surprise, the nation's economy lost far fewer jobs than expected in November, fueling the belief that the labor market is officially on the mend.

The Labor Department reported that 11,000 jobs were slashed from nonfarm payrolls last month, besting consensus estimates calling for a decline of 125,000 jobs, according to economists polled by Thomson Reuters. The easing drop in November marks the fewest losses since December 2007.

The nation's jobless rate also edged down to 10% from a 26-year high at 10.2% last month.

But individual estimates had varied widely before the release of the report, with some predictions approaching declines of 200,000 and others forecasting a near flat result. Taken together, the figures offered a welcome surprise to many market observers who had been looking forward to the report all week.

"This is good news," said Peter Cardillo, chief market economist at Avalon Partners, who had forecast a loss of 95,000 jobs and the jobless rate declining to 10.1%. "This is a step in the right direction and confirms that we've probably peaked in unemployment."

"Traditionally, unemployment lags," added Cardillo. "But it looks as though the economy will stop shedding jobs and we can start seeing some job growth in the first quarter of 2010."

Though the strong result also comes coupled with the realization that the number of unemployed continues to remain high, investors were feeling buoyant after the release, as the Dow Jones Industrial Average added 137 points, or 1.3%, to 10,503. The S&P 500 rose 18 points, or 1.6%, to 1,118, as the Nasdaq gained 40 points, or 1.8%, to 2,213.

Even more telling, the government report reflected sharp revisions in job loss estimates from recent months. October losses, which were originally estimated at 190,000, were edited down to 111,000. September losses fell to 139,000 after a downward revision from 219,000.

Temporary help services and health care segments added jobs, though that was offset by losses in construction, manufacturing and information. The average workweek figure also rose by 0.2 to 33.2 hours, while average hourly earnings edged higher by 0.1%.

1 of 2

Select the service that is right for you!

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 17,804.80 +26.65 0.15%
S&P 500 2,070.65 +9.42 0.46%
NASDAQ 4,765.38 +16.9840 0.36%

Brokerage Partners

Rates from

  • 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