Jobs Report: +200k Jobs, Unemployment Rate 7.0%
On Friday, the Labor Department reported that the economy gained 203k jobs in November. The unemployment rate dropped to 7.0%. The numbers were better than the 185k jobs economists had expected. It is down slightly from October's reported 204k in new jobs.
Markets had been eagerly anticipating the November report, as an indication of the Fed's next actions. A strong jobs report would suggest the Fed may finally begin "tapering" its bond purchasing program. Strong job growth would indicate the economy was healthy enough to no longer require the Fed flooding the market with stimulus.
Over the past 12 months, job growth has averaged 195k new jobs each month. While that number is slightly below population growth, it does indicate that the economy is at least stable. It is likely, then, that the Fed will trim its "quantitative easing" program, which has been injecting $85 Billion a month into the market.