US unemployment rate hits seven-month high

The US Labor Department says the country’s unemployment rate rose to 9.8 per cent in November, the highest since April, raising fears about the strength of the current economic recovery.



Just 39,000 jobs were created last month.



This was below analysts' expectations.



In October, 172,000 jobs were created.



Stocks markets fell sharply after the figures were published.



The department says 15.1 million people are now unemployed in the US, equalling a rate of 9.8 per cent.



This is an increase from the 9.6 per cent rate recorded in the previous three months.





Jobs were created in the business services, and the healthcare and mining sectors, but job numbers in the retail and manufacturing sectors fell.



The job numbers are a first estimate, and could be revised in the coming months.