Unemployment Rate Drops to 7% as U.S. Adds 203,000 Jobs in November

The Labor Department Friday said that the U.S. economy generated 203,000 jobs in November and the official unemployment rate fell to seven percent, the lowest rate in five years.

The number of jobs added and the resulting unemployment rate exceeded the expectations of most analysts and economists, who on average predicted about 180,000 new jobs.

Labor also revised upward the job gains from September and October by a total of 8,000. Job growth averaged 195,000 per month over the prior 12 months.

Hiring was strong across nearly all industries in November.  Construction (+17,000 jobs) and manufacturing (+27,000) were solid as were gains in professional and business services (+35,000) and retail (+22,000).

Federal government employment continued to decline (-7,000) in November. Over the past 12 months, federal government employment has decreased by 92,000.