economy creates 120,000 jobs, rate 8.6%

Economy Creates 120,000 Jobs, Rate Tumbles to 8.6%

CNBC.com | December 02, 2011 | 08:34 AM EST

Job creation remained weak in the U.S. during November, with just 120,000 new positions created, though the unemployment rate slid to 8.6 percent, a government report showed Friday.

The rate fell from the previous month's 9.0 percent, which would reflect a drop in the participation rate among those without jobs.

Average earnings edged higher two cents to $23.18 an hour. Private payrolls increased 140,000, considerably less than a report earlier this week showing that nongovernment jobs were up by more than 200,000 for the month.

With other economic indicators pointing higher, jobs and housing remain the primary missing links from the U.S. recovery.

New weekly unemployment claims had recently taken a turn below the psychologically important 400,000 mark, providing some hope that there was positive momentum in the jobs market. That streak was broken this week when claims came in at 402,000, though the week was not part of the survey period for the numbers released today.

However, other indicators remain weakened, including withholding tax receipts at the Treasury and internal readings on manufacturing gauges.

Expectations were high for the confirms payroll number as well after ADP and Macroeconomic Advisors on Wednesday said private companies added 206,000 jobs from October to November.

That report, however, does not count public sector jobs, which have been shrinking as state and local governments have been cutting payrolls to balance their budgets.

CNBC