The surprisingly solid jobs report — and how it strengthens Obama's hand in the fiscal cliff talks

A rise in the jobless rate might have hurt the president's argument that America ought to raise taxes on the wealthy

Good news for Obama: The unemployment rate has fallen to 7.7 percent — the lowest it's been in four years.
(Image credit: AP Photo/Carolyn Kaster)

The Labor Department on Friday reported that the U.S. economy added 146,000 jobs in November, and that the unemployment rate fell to 7.7 percent, its lowest level since December 2008. The labor market's performance was far better than expected, with most analysts projecting a deeper economic fallout from Hurricane Sandy, which battered the East Coast in late October, bringing economic activity in some areas grinding to a halt for much of early November. That the economy could literally weather the storm with relative ease is just the latest evidence that the agonizingly long recovery from the Great Recession is here to stay.

Leading the gain in jobs were the health care sector, professional and business services, and retail industries. The strong performance in retail is particularly heartening, since it shows that consumers are opening their wallets, a boon for many companies.

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Ryu Spaeth

Ryu Spaeth is deputy editor at TheWeek.com. Follow him on Twitter.