By Sarah Chaney Cambon

Employers added 245,000 jobs last month the Labor Department said Friday, less than half the 610,000 jobs added in October. The unemployment rate edged down slightly to 6.7% in November from 6.9% a month earlier.

November marked the seventh consecutive month of job gains at a steadily cooling pace. The labor market has now regained slightly more than half of the 22 million jobs lost at the onset of the pandemic.

Employers boosted jobs in the transportation and warehousing sectors last month, likely reflecting holiday hiring for e-commerce roles. Employment declined in government and in the retail category that includes bricks-and-mortar stores.

The U.S. economy overall has recovered much of the ground lost earlier this year, even though the expansion has slowed since the third quarter's rapid rebound. U.S. consumers boosted their spending in October for the sixth straight month, and new applications for unemployment benefits--a proxy for layoffs--fell last week after a recent jump.

The economy faces near-term challenges, including a new wave of virus infections that triggered some states and localities to impose new restrictions on business. The onset of winter could deter spending and job creation in sectors like restaurants that have become more reliant on business outdoors.

Still, the labor-market recovery from the job destruction this spring has been stronger than most economists forecasted. Many expect widespread vaccine distribution to eventually help lift the economy as businesses are allowed to reopen and consumers feel more comfortable traveling, going to the movies and returning to other in-person activities involving proximity to other people.

"As infection rates go down, as the number of people vaccinated goes up, then we'll start to see...business activity expand at a faster rate, and we will see the employment numbers pick up more strongly," said David Berson, chief economist at Nationwide Mutual Insurance Co.

Write to Sarah Chaney Cambon at sarah.chaney@wsj.com

(END) Dow Jones Newswires

December 04, 2020 09:04 ET (14:04 GMT)

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