Employment Numbers Encouraging Despite Slowed Growth, Economic Concerns

The U.S. Secretary of Labor Elaine L. Chao issued a optimistic statement concerning the November employment numbers today, saying -

"Despite challenges in the housing markets and high energy prices, we've now seen 51 consecutive months of job growth -- the longest uninterrupted period of job growth since employment surveys have been taken. Ninety-four thousand net new jobs were created in November, and the unemployment rate held steady at a low 4.7 percent, better than market forecasts. The substantial increase in average hourly earnings in November is also good news for workers and demonstrates the effectiveness of economic policies that keep taxes low."

The unemployment rate is only .2% higher than at this time last year. Manufacturing and housing related employment such as real estate, construction and credit intermediation saw continued declines. The areas seeing continued growth are jobs in professional and technical services, as well as health care and food service.

The report states the average wage rose by .08 cents, although no mention was made of how this compares to the rate of real earnings, which adjust for inflation, in the employment report. The Department of Labor also released a real earnings report for September - October recently, which showed a .2 percent decrease in weekly earnings.

Due to the maner of which the survey is conducted, no distinction between legal and illegal workers is made in the numbers. Also, self-employed people are not included in the current survey. Household surveys take not of the self employed, giving an estimate of the total number which has remained flat.

The effect of new business begun the previous month may not be immediately measured.

The report does not count job seekers "marginally attached" to the job market as being unemployed. That groups consists of nearly 1.4 million people who were able to work and had looked for a job at any point in the last 12 months but not in the 4 weeks prior to the survey. This group included 349,000 "discouraged workers" who were not looking for work because they believed there were no jobs available. The one million remaining had ceased looking for work because of other responsibilities such as family and school.

Contrary to popular belief, the unemployment figures do not only measure the number of people receiving unemployment benefits. All persons who report actively looking for work are included in the group, and the survey does not ask whether or not unemployment benefits are being received.

U.S. Department of Labor, Statement of U.S. Labor Secretary Elaine L. Chao on November employment numbers
U.S. Department of Labor, November Employment Situation
U.S. Department of Labor, Real Earnings in October 2007