Employers were hard at work hiring in November, signaling
the labor market’s gradual healing continues.
U.S. payrolls expanded by 203,000, the Labor Department
reported on Friday, a total well above the gain of 180,000 economists had
forecast.
The jobless rate, meanwhile, dropped to a five-year low of
7.0%. It had been expected to tick down to 7.2% from 7.3% in October.
The report also showed about 8,000 more jobs were added to
payrolls in September and October than previously thought.
Stocks shot sharply higher on the news, snapping a
five-session losing streak. The Dow rocketed nearly 200 points, or 1.3% higher,
to close at 16,020.
The report heated up speculation the Federal Reserve might
start to taper its aggressive stimulus efforts as early as December.
But investors seemed comfortable that the Fed won’t move
until it has to and that the economy will be able to withstand it when it does.
“(The jobs report) shows that economic growth is happening
and likely to continue into 2014,” Douglas Handler, chief U.S. economist at IHS
Global Insight, told the Daily News.
“That fact alone is enough to justify a bit of a rally.”
The central bank has been buying $85 billion in bonds to
help push down long-term interest rates and jump start a steady, but somewhat
tepid, economic recovery.
Job gains were broad-based in November, with factories adding 27,000
workers and construction jobs rising by 17,000.
Source: NYDailyNews
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