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December 5, 2004 04:44 PM

Weak Employment Rport Casts Doubts Over US Economic Strength


Excerpt: A weaker-than-anticipated report on the US labor market, showing just 112,000 jobs added in November, cast fresh doubts over the pace of growth of the world's largest economy.


A weaker-than-anticipated report on the US labor market, showing just 112,000 jobs added in November, cast fresh doubts over the pace of growth of the world's largest economy.

The slowdown in nonfarm payroll job creation -- seen as essential to sustainable economic growth -- came after a surge of 303,000 new jobs in October. Economists had been expecting, on average, some 200,000 new jobs in November.

The unemployment rate dipped 0.1 percentage points to 5.4 percent, the Labor Department (news - web sites) said.

"The payroll report was unambiguously soft," said economist John Lonski of Moody's Investors Services, adding that it appeared to contradict other surveys suggesting increased hiring in manufacturing and other areas.

"The conclusion you draw is payrolls are growing but at a rate that is well below the rate that is usually associated with the current state of the US economy."

"Today's nonfarm payroll figure was a disappointment, pure and simple," said Merrill Lynch economist Sheryl King, who said recent data point to US economic growth of below three percent in the first quarter of 2005.

"A typical payroll gain six months following the first tigthtening by the Fed is 200,000 -- today's number fell well short of the mark."

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Read all 21 posts in the same category of Economy:

U.S. Quiet on China Trade Tax - Dec 17, 2004
Fed Raises Interest Rates for 5th Time This Year - Dec 17, 2004
OPEC Considers Output Cut to Keep Prices From Falling - Dec 09, 2004
A Plan For U.S. Energy Security? - Dec 08, 2004
Fed Heading For A Pause - Dec 07, 2004
Social Security Reform = New Debt - Dec 06, 2004
Fed Sees Growth, Measured Rate Hikes - Dec 05, 2004
Fed: Inflation Not Setting Off Alarms - Dec 05, 2004
Balancing Act On The Buck - Dec 04, 2004
Job Growth Is Well Below Wall Street Forecasts - Dec 03, 2004
Fed Reports Growth In 11 Of 12 Regions - Dec 02, 2004
Inflation Under Control, Fed Gov. Says - Dec 02, 2004
Global Forecasts for 2005 Growth Are Reduced - Nov 30, 2004
Borrowing For Social Security Plan? - Nov 28, 2004
No Longer Top Dollar? - Nov 26, 2004
Don't Worry ... Don't Be Happy - Nov 26, 2004
Is Another Recession Brewing? - Nov 25, 2004
Inflation Is Tame, Right? - Nov 24, 2004
The Dollar Is Down, But Should Anyone Care? - Nov 21, 2004
Bush Sets Plans To Revamp Taxes, Social Security - Nov 04, 2004