US economy adds 94,000 jobs

WASHINGTON, Dec 7, 2007 (AFP) - US economic momentum generated 94,000 new jobs in November, the government announced Friday as the rate of hiring slowed from the prior month.

The pace of job creation slowed considerably in November after 170,000 new jobs were generated in October, but hiring last month was stronger than most Wall Street analysts had expected.

Economists had anticipated hiring in November would slow to around 70,000 new positions. The report is consistent with slowing economic growth, but not necessarily a harbinger of a severe economic downturn that some analysts have predicted.

The national unemployment rate remained unchanged at 4.7 percent, according to the monthly snapshot by the Labor Department.

Economists say the world's largest economy needs to create between 110,000 and 140,000 posts a month to absorb new labor market entrants, so November's reading appeared lackluster.

Job growth was largely bolstered last month by hiring in the services sector which created 127,000 new jobs while the professional and business services sector generated 30,000 new positions.

Job losses in other industries offset the gains triggered by the services sector.

The goods-producing sector lost 33,000 positions while the construction industry shed 24,000 posts and the manufacturing sector lost 11,000 jobs.

The slowdown in overall job creation suggests a cooldown in economic momentum days before the Federal Reserve meets to mull US interest rates. Fed chairman Ben Bernanke has warned that economic growth is likely to slow in coming months.

Most economists expect the Fed to trim interest rates following two back-to-back rate cuts in September and October. The short-term Fed funds rate is presently anchored at 4.50 percent.

The government survey also revealed that average hourly earnings ticked up 0.5 percent in November to 17.63 dollars. Most economists had predicted an uptick in earnings of only 0.3 percent.

Average hourly earnings have surged 3.8 percent in the year to November.