The U.S. unemployment rate unexpectedly tumbled in the month of November even as the economy added fewer jobs than expected.
According to statistics released by the Labor Department on Friday, the unemployment rate in the U.S. fell to 8.6 percent in November, the lowest level since March 2009.
Most economists had expected the unemployment rate to hold steady at the 9 percent level reported in October. Analysts pointed out that 315,000 people gave up looking for work altogether, helping to drive the unemployment lower.
Labor Department Secretary Hilda Solis told RTTNews that more Americans leaving the workforce was a reflection of people starting new businesses.
Paul Ashworth, Chief U.S. Economist at Capital Economics, said, "The unemployment rate is still very high, but any improvement is welcome, particularly against such a troubling global backdrop."
At the same time, job growth came in weaker than expected, with the economy adding a net 120,000 new jobs in November.
That figure, while better than the 100,000 jobs added in October, fell short of the increase of 131,000 jobs predicted by most economists.
While the job growth in November was below expectations, the job gains in September and October were upwardly revised by a total of 72,000.
Private sector job growth of 140,000 new positions in November was somewhat offset by the loss of 20,000 government jobs for the month. Most economists had expected the private sector to add 150,000 new jobs.
The number of people unemployed for 27 weeks or more, known as the long-term unemployed, was little changed in November at 5.7 million. The long-term unemployed account for 43 percent of the total number of unemployed people.
The private sector job growth came in the retail sector, which added 50,000 new positions, while the leisure and hospitality industry added 22,000. The professional services and health care sectors also added jobs.
However, employment in the critical manufacturing and construction sectors showed little change in November, according to the Labor Department.
The number of people working part time because their hours had been cut back or because they are unable to find full time work dropped by 378,000 to 8.5 million.
As predicted by most economists, the average workweek for employees held steady at 34.3 hours, while average hourly earnings unexpectedly fell by 0.1 percent.
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