WASHINGTON - Total nonfarm payrolls increased 39,000, while private payrolls added a disappointing 50,000 jobs in November, well below economists' estimates, as the unemployment rate increased to 9.8%, the Labor Department reported Friday.
Government payrolls dropped by 11,000. Payrolls for October and September were revised higher by a combined 38,000.
The construction sector shed workers in November after adding jobs in October. The financial activities sector shed jobs for the first time since August.
Economists expected nonfarm payrolls to grow 138,000 in the month, private payrolls to increase 140,000, and the unemployment rate to remain at 9.6%, according to the median estimate from Thomson Reuters.
The unemployment rate increased to 9.8% following three straight months at 9.6%.
Before the report, Brian Levitt, corporate economist for Oppenheimer Funds, predicted unemployment could “tick higher” in the months to come as jobless workers renew their job hunting. Small businesses, which have typically generated job growth after previous recessions, have been reluctant to hire during this recovery, partly due to anxiety over the tax cut extension, he said.
Average hourly earning for all employees increased by one cent to $22.75. The average workweek was unchanged at 34.3 hours in November.
Economists expected average hourly earnings to increase 0.2% and for the workweek to remain at 34.3 hours for all employees.
Federal government payrolls added 2,000 jobs while state and local payrolls shed 13,000 jobs. The state and local sectors have shed 198,000 jobs since January.
Today's employment report comes as state and federal extended unemployment benefits are expiring. Labor Secretary Hilda L. Solis said in a statement Wednesday that 2 million people will lose their unemployment insurance by the end of December if Congress does not vote to extend the benefits.
