U.S. employers hired more workers than expected in November, marking a fourth consecutive month of solid hiring, and the unemployment rate fell to a 5-year low of 7 percent, the government reported Friday in an encouraging sign for the economy. The Labor Department said employers added 203,000 jobs last month, nearly matching October's revised gain of 200,000. The job increases helped lower the unemployment rate from 7.3 percent to 7.0 percent, its lowest level since November 2008. The unemployment rate fell even as the participation rate-the share of working-age Americans who either have a job or are looking for one-rebounded from a 35-year low in October. The economy has generated an average of 204,000 jobs per month from August through November, up from 159,000 per month from April through July. The closely watched employment report was released less than two weeks before the Federal Reserve's (Fed's) December 17-18 policy-setting meeting. The stronger-than-expected reading on job creation in November could stir speculation the central bank might reduce its current pace of bond purchases this month, but most economists believe the Fed will want further signs of economic progress before changing its extraordinary stimulus program. Notes from the central bank's last meeting in October showed policymakers were preparing to reduce their monthly $85 billion bond-buying campaign in coming months as long as the economy continues to improve.
