Job Growth Far Lower Than Expected

Unemployment rate drops to 5.9 percent, lowest in eight months

December 5, 2003

WASHINGTON — American employers hired far fewer workers than expected in November, the government said on Friday in a report that still showed the fourth straight month of job growth and a drop in the unemployment rate.

The number of workers on U.S. payrolls outside the farm sector in November edged up by 57,000, the Labor Department  said, from an upwardly revised climb of 137,000 the previous month.

The November gain was far lower than forecasts for a bumper increase of 150,000. Analysts had ratcheted up their forecasts after recent data showed the economic recovery gaining strength.

The department said grocery store strikes , mainly affecting California, had added up to 20,000 jobs to October's gain and deducted up to 30,800 workers from November's number.

In an encouraging sign for the health of the labor market, the unemployment rate edged down to 5.9 percent, the lowest level since March, from 6.0 in October.

A large portion of the job gains came in the services sector while struggling factories cut jobs for the 40th month in a row.

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