US jobs strong in November

A stronger-than-forecast 132,000 new US jobs were created in November, according to a government report today.

A stronger-than-forecast 132,000 new US jobs were created in November, according to a government report today.

The US Labor Department said the unemployment rate edged up to 4.5 per cent from the five-year low of 4.4 per cent it reached in October. But analysts focused on the new-jobs total that topped Wall Street economists' forecasts for 110,000 jobs.

Stock futures prices rose after the report was issued while bonds slipped on the assumption that more vigorous hiring decreased chances the Federal Reserve would lower interest rates early next year to spur the economy.

The Fed's policy-making group meets on December 12th and is widely expected to keep benchmark rates steady at 5.25 per cent for a fourth straight meeting.

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All the November hiring occurred in service industries, where 172,000 jobs were added, while goods-producing industries shed 40,000 jobs.

Some 29,000 construction jobs were lost in November on top of a 24,000-job reduction in October, reflecting the reduced level of activity in homebuilding and other construction.