Economy and Jobs Watch: November Numbers Still Lag Behind Need

The Bureau of Labor Statistics November Job Report shows a continuing disappointing trend in employment as the nation’s employers added 112,000 jobs in November, far below analyst projections of least 200,000 jobs. This report is a bit of a surprise after the October report showed a strong month with 303,000 jobs added. The 112,000 jobs, about what was added in September this year, is below the approximately 140,000 jobs per month necessary to keep pace with new workers entering the workforce.

Also disappointing is the decline in average hours worked per week by 0.1 hours. Combined with an essentially stagnant wage growth (up $0.01), average weekly earnings dropped 0.2 percent to $533.47. The rise in wages by one cent was the smallest increase since wages dropped by a penny almost a year ago in December 2003. For the twelve months ending in November, average hourly earnings are up 2.4 percent, but they are essentially flat when adjusted for inflation.

Unemployment was essentially unchanged, with approximately 8 million workers unable to find a job (5.4 percent), but first-time claims for benefits jumped 25,000 in the last week of November to 349,000 after relatively quiet activity the rest of the month. In addition, according to the Economic Policy Institute [1], both the median and average time unemployed workers spend looking for work rose in November, with the average reaching its highest level since June at 19.9 weeks.

While the jobless recovery in some ways appears to be over, economists are still unclear about certain aspects of the economy and future growth. What is clear is that President Bush’s policies have not resulted in adding an average of 306,000 jobs a month as predicted by the White House Council of Economic Advisers. With each successive month of weak job growth and stagnant wages, it becomes clearer and clearer those policies have failed.