The United States economy added 57 000 jobs during November but that figure was far fewer than expected, adding to fears that the upturn is failing to translate into significant employment growth.
The jobless rate in the US fell from 6% to 5,9%, the lowest it has been since March. November was the fourth consecutive month of employment gains.
Economists, though, had been forecasting the creation of 150 000 jobs during the month after recent data pointed to an expansion in the US economy. Gross domestic product grew at a rate of 8,5% during the third quarter, the biggest increase for 20 years, prompting hopes that employers might start hiring again.
The disappointing figures sent the dollar to a new low against the euro. The single European currency was worth $1,2144, up from $1,2066.
To sustain the recovery, economists reckon that between 200 000 and 300 000 new jobs need to be created every month.
The disappointing figures weighed on Wall Street. Last week the Dow Jones index of leading shares was 30 points lower at 9900.
US states heavily reliant on manufacturing jobs are still seeing little evidence of the recovery. Industry cut another 17 000 jobs last month.
The contraction was the 39th month of job losses in the manufacturing sector and key states affected such as Ohio, Pennsylvania and West Virginia could have a decisive impact on the re-election chances of President George W Bush. The manufacturing sector in the US has lost about 2,7-million jobs since Bush entered the White House.
But the average working week in manufacturing grew from 40,2 hours to 40,8 hours, suggesting that activity is picking up. The Commerce Department also said new orders to US factories had risen by 2,2% during October.
The November employment figures were in part flattened by the impact of a strike in California, which accounted for the loss of 23 000 jobs.
The Labour Department said the US economy had added 328 000 jobs since the beginning of August. — Â