American employers barely took on any new workers in December, a disappointing government showed today, indicating the economic recovery has yet to translate into sustained jobs growth.
However, the unemployment rate fell to 5.7 per cent, the lowest level in over a year and down from 5.9 per cent in November.
The number of workers on U.S. payrolls outside the farm sector in December increased by just 1,000, the Labor Department said, after a downwardly revised rise of 43,000 in November. I
It was the fifth consecutive monthly rise but was far worse than economist expectations
Encouraged by a reasonable holiday shopping season and a drop in filings for jobless benefits in December, economists had been expecting payrolls to rise 130,000.
The jobless rate was forecast to hold steady at 5.9 per cent.
The unexpectedly poor report reflected a 38,000 fall in hiring in the retail sector, which the department said was due to less hiring than usual at general merchandise stores.
The troubled manufacturing sector failed to break its job-cutting trend, shedding 26,000 jobs in December, the 41st month of declines. Some economists, pointing to recent data suggesting a turnaround in manufacturing, had predicted factories would finally take on new workers in December.