November's Job Growth Reported

American employers added 94,000 new jobs last month, exceeding economists' expectations tempered by the housing crunch and shrinking manufacturing employment. Yet, the picture for long-term unemployment is darkening.

Effects of the housing slowdown can be seen in in many construction-related fields. Residential construction and contractors were down 20,000 jobs last month. Despite solid export growth and a shrinking trade deficit, manufacturing employment again contracted in November, down 11,000 jobs. While faster export growth is providing fuel to the economy, factory job losses have continued.

Long-term unemployment, defined by a term of six months or more, rose to 19.5%, its highest level since May 2005 (these are persons unemployed for at least half a year). While this may be a monthly spike, it is fully consistent with other data showing that, though layoffs are not accelerating, hiring is weakening and leaving more job seekers stuck on the unemployment roles.

The government sector added 30,000 jobs last month; the private-sector added 64,000 jobs.

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