In this video clip, Gazelle Index CEO Dr. Danny Boston and CNN anchor Suzzanne Malveaux discuss the latest Department of Labor jobs report which was released on Friday, Nov 7, 2012.
Dr Boston talks about why the economy created twice as many jobs as were predicted and the implications for the fiscal cliff debate.
The economy created 146,000 jobs in November; exceeding the amount created in October and twice as many as were predicted. At the same time, the unemployment rate declined to 7.7%, from its October level of 7.9%.
This indicates that Hurricane Sandy had a milder and more transitory effect on the economy than originally anticipated. It also means that the economy is strong hitting the fiscal cliff may not be as devastating as is being predicted. All of this means that the President and Congress can act a bit more boldly to increase taxes and cut spending without the fear of causing a recession.
In related developments:
- White unemployment rate, declined to 6.8% (from its October level of 7.0%)
- Black unemployment declined to 13.2%, from its October level of 14.3%. (Note that 306,000 fewer blacks were in the labor force, representing 87% of the total decline. This means that a portion of the decline in the black unemployment rate was caused by the large number of blacks who left the labor market, and are not counted among the unemployed.)
- Latino Unemployment unchanged at 10%