WASHINGTON: The US unemployment rate in November fell to its lowest level since August 2007 as the economy continued to add new jobs, all but guaranteeing an interest rate hike this month.

The jobless rate fell an unusually large three-tenths to a surprising 4.6 per cent, the Labour Department reported Friday.

A solid 178,000 net new positions were created, in line with analysts’ expectations. The economy has added jobs at an average rate of 180,000 a month so far this year, a healthy pace but below the 229,000 rate in 2015.

The big drop in the unemployment rate was a shock as it had moved little over the prior year. The number of people in the workforce — the labour force participation rate — was also little changed at 62.7pc.

Private firms added 156,000 in the latest month, with continued gains in construction, healthcare and leisure.

However manufacturing firms lost jobs again in November, for a drop of 15,000 over the past three months, and retail fell slightly, unusual at a time when stores are adding seasonal workers for to deal with holiday shopping.

The share of long-term unemployed, or those seeking work for 27 weeks or more, was stable at 1.9 million, or 24.8pc of the all unemployed people.

Published in Dawn, December 3rd, 2016