Heading into the day, most were expecting around 100,000 new jobs which was already bad. Unfortunately the number came in at 80,000. The good news was that previous two months were bumped up. We're still a long way away from anything resembling a strong recovery.
The U.S. jobless rate unexpectedly fell in October while employers added the fewest workers in four months, reinforcing Federal Reserve Chairman Ben S. Bernanke’s prediction of a “frustratingly slow” recovery.
The unemployment rate dropped to a six-month low of 9 percent from 9.1 percent, even as more people entered the labor force. Payrolls rose by a less-than-forecast 80,000, following increases in the prior two months that were revised up by 102,000, Labor Department data showed yesterday in Washington.
The figures indicate the world’s largest economy will be able to weather risks such as the European debt crisis and political wrangling on cutting the U.S. budget deficit. Fed policy makers are forecasting “moderate” growth that won’t push unemployment below 8 percent until 2013, one reason why they are considering further stimulus to spur demand.
