U.S. employers hired fewer workers in the last month of 2010 than had been expected, although despite the weak growth, the unemployment rate fell to the lowest level in a year and a half, according to Reuters. On Friday, the Labor Department December’s employment report that showed non-farm employers added 103,000 jobs, which represented a 113,000 job increase in private hiring and a 10,000 job decrease in government payrolls. The overall figure fell short of projections for an increase of 175,000, although the report found the unemployment rate dropped from 9.8% in November to 9.4%, marking the lowest level since May 2009.
Economists responded to the report with disappointment, with Brian Dolan of Forex.com saying that the data “reinforces the idea that we’re in for a long, slow jobless recovery,” although October and November were revised up to show an additional 70,000 jobs were created. Despite the lackluster employment data, Federal Reserve Chairman Ben Bernanke said, “We have seen increased evidence that a self-sustaining recovery in consumer and business spending may be taking hold.” Bernanke continued to say that ongoing high levels of unemployment “could threaten the strength and sustainability of the recovery,” if it weighs on incomes and confidence.
Click here to read the story on the employment summary from Reuters.
Click here for coverage of Bernanke’s comments from Reuters.