Forex: Payroll Employment Shows Modest Decrease In November

Employment was nearly unchanged in the month of November, according to a report released by the Labor Department on Friday, with the dramatic slowdown in the pace of job losses likely to generate some optimism about the outlook for the labor market.

The unemployment rate also unexpectedly dipped to 10.0% - encouraging hope that the labor market is starting to stabilize and that job growth will soon begin again.

The Labor Department revealed that non-farm payrolls edged down by 11,000 in November. Most economists had expected a decline of at least 100,000.

Not only did this month's report come in better than expected, revised figures for the previous couple months showed fewer job losses in October and September than people had previously thought.

Updated data showed 111,000 job losses in October and 139,000 job losses in September.

Previously, October's job losses had been reported as 190,000 and September's decline was put at 219,000.

The unemployment rate slipped to 10.0% after jumping to a 26-year high of 10.2% in October. Economists had expected the unemployment rate to remain stable.

Joel Naroff, chief economist at Naroff Economic Advisors, said, "Wow! That is the only description I can make of the November jobs report."

"Payrolls were down, but by a minimal amount," Naroff added. "Just as good were the revisions to previous months, which now show significantly smaller employment losses."

Job losses have been easing over the last several months. November represented the fifth straight month with a lower number of payroll declines.

The average workweek ticked up to 33.2 hours, from last month's level of 33.0 hours. Average hourly earnings also ticked up, rising to $18.74 from $18.73.

Construction, manufacturing and retail continued to lose jobs in the month. However, this was largely offset by gains in the professional and business services and education and health services sectors. Government jobs also ticked up slightly.

Construction lost 27,000 jobs, while manufacturing shed 41,000 jobs. Retail trade experienced a 15,000 slide in payrolls.

Professional and business services saw employment rise by 86,000, while payrolls for the education and health services sector were up by 40,000.

The government segment saw a 7,000 increase in jobs.