MercoPress. South Atlantic News Agency

US unemployment down to Dec 2008 level; 12 million still out a job

Many corporate leaders wary of the fiscal cliff dispute of President Obama with Congress

The US announced that the labour market advanced sharply last month and its jobless rate fell to 7.7%, the lowest level in nearly four years. Washington said that late October's devastating super-storm Sandy had little effect on hiring, as employers unexpectedly added 146.000 new jobs in November, which was substantially more than economists had predicted.

The jobless rate improved from October's 7.9% level to reach its lowest point since December 2008. But the government said employers added 49.000 fewer jobs in October and September than initially estimated.

The government report says the biggest factor in the jobless rate decline was the fact that more Americans stopped looking for work. When people without jobs give up looking for work, they are no longer counted as unemployed.

The US economy, the world's largest, is advancing steadily, but slowly, that with many employers wary about hiring more workers. The government said 12 million workers remain unemployed.

Key corporate leaders say their investment plans are uncertain as US President Barack Obama and congressional leaders wrangle over end-of-year tax and spending issues that remain unresolved. The country is trying to avert what Washington is calling a “fiscal cliff”, 600 billion dollars in mandated spending cuts and tax increases that would affect almost all American workers.

White House economic adviser Alan Krueger said the latest jobs report is “further evidence” that the US economy is improving from the depths of the recession. That downturn in 2008 and 2009 was the worst period for the nation's economy since the Great Depression of the 1930s. But Kruger said “more work remains to be done” to spur growth.