Payrolls rise, jobless rate pulls back to 9.4% in December (MarketWatch) (07-01-2011)

WASHINGTON (MarketWatch) — According to the Labor Department, the U.S. economy added 103,000 jobs in the final month of 2010 while the unemployment rate fell to 9.4%, the lowest level since May 2009.

Payrolls for November and October were also revised higher by 70,000 jobs, the government said.

The December gain in jobs, however, fell short of expectations. Economists surveyed by MarketWatch had predicted a net 175,000 increase, with many raising their forecasts earlier this week after another key report indicated a pickup in hiring. 

Economists had been expecting the unemployment rate to remain flat. The jobless rate spiked to as high as 10.1% in October 2009, compared to under 5% before the 2007-2009 recession began.

The initial market reaction was muted, with stock futures moving in and out of positive territory.

The latest increase in job growth is one of many signs that the U.S. economy is gradually emerging from its malaise following the official end of the recession in the summer of 2009.

Source: MarketWatch