US job losses drop

The US labor market is showing strong signs of a recovery. US employers cut only 11 thousand jobs in November. Numbers for October and September have also been revised, and are now showing far fewer job cuts than the Labor Department first announced. James Kim has the details.

Data from the US Labor Department showed the economy shed far fewer jobs in November than initially forecast.

November's cuts of 11 thousand jobs, were the smallest since the economic recession began two years ago.

Meanwhile, November's unemployment rate dropped by 0.2 percent from the previous month's rate of 10.2 percent. Analysts say an improving labor market is considered crucial to an economic recovery.

Bob Brusca, Chief Economist of Fact and Opinion Economics, said, " The job market makes a turn stronger than expected, and it just keeps on going, and what will happen is we'll start to create jobs, and maybe we've already created jobs, by the time they revise this, and it will start to build on it."

Other signs indicating a recovery was a government report that showed factory orders were up 0.6 percent.

Labor Secretary Hilda Solis says she feels encouraged, but that it's still too early to celebrate.

Hilda Solis, US Labor Secretary, said, "Certainly we do see a modification occurring but I would not say we are totally out of the woods yet, because the number of unemployed is high. It is very, very high, and it is unacceptable."

Some economists have commented that November's surprise is typical of what happens at this stage of an economic recovery.