US unemployment rate rose again to seven month high of 9.8 percent, US labour department said on Friday, December 3. Only 39,000 jobs were created in November much less than analysts’ expectations. In addition, this figure is very lower than the figure of 172,000 jobs created in October.
Most of the western stock indices were closed down on the back of US unemployment report. The UK’s FTSE 100, Germany’s DAX and France’s CAC fell back registering negative change. Euro inched up to $1.335. However, the jobs number is the first estimate and optimists are expecting the figure may be revised upwards. Jobs were created in the business services, healthcare and mining sectors, but job numbers in the retail and manufacturing sectors fell.
The labour department of the US said there were 15.1 million unemployed in the US, which is equal to 9.8 percent. This is greater than 9.6 percent figure recorded past three months. Analysts say that many people are giving up seeking new jobs there by disappearing from official unemployed people. There was also rise in long term unemployed labour department revealed.
Rise unemployed means less people coming to shops to buy goods. Less consumer spending contributes to slower GDP growth. Many US citizens ceased to be eligible for claiming unemployment benefits by November as per BBC news.