Published December 10, 2010

The U.S. economy added fewer jobs than expected in November. The weakness in the jobs report 17 months after the recession officially ended is a vivid reminder that we have a long way to go before a full-fledged recovery. The unemployment rate has been above 9 percent for 19 months, the longest period for such an elevated level since World War II.

Retailers are becoming more cautious with the combination of weak job numbers and the extension of jobless benefits in doubt. Congress could deliver a double whammy to Christmas if it fails to extend unemployment benefits and fails to deliver an extension of tax cuts. The air could go out from what started as a robust holiday season.

Private-sector employers added only 50,000 jobs last month, significantly fewer than the 250,000 needed just to accommodate workforce growth. The jobless rate rose to 9.8 percent, the highest level since April. Economists had expected a growth rate of 144,000 jobs and a jobless rate of 9.6 percent.
Retail shed jobs going into the Christmas season. Manufacturing lost 13,000 jobs, the fourth decline in
a row. Government shed 11,000 jobs, mostly at local levels where tight budgets have caused
problems.

The weak numbers caused Vice President Joe Biden to say there is no denying the numbers were
disappointing. Ben Bernanke recently said that job creation is the most important job the government
faces; this was the motivation behind the Fed’s latest bond purchase program. Bernanke said the
jobless rate could grow if the economy continues to grow at its sluggish rate. He is particularly
concerned about those who have been out of work for an extended time.

The broader measure of unemployment, which includes […]