The unemployment rate rose to 10.1% in December last year from 9.8% in the same month of 2011. The increase in the unemployment rate was due in part to the higher labor force participation ratio. The seasonally adjusted figures verified the deterioration in the unemployment rate. In seasonally adjusted terms, the unemployment rate rose to 9.6% in December from November's 9.5%. This was the third consecutive monthly increase. However, different from the preceding four months, the number of employed fell in seasonally adjusted terms and the labor force participation ratio remained pretty flat, meaning that the increase in the unemployment rate was more evidence of some weakening in the labor market conditions. We calculate that the seasonally adjusted increase in non-farm payrolls slowed remarkably over the last two months led mainly by services, which is also proof the less favorable economic growth outlook for 2012. The average unemployment rate was 9.2% in 2012 and we expect a 9.5% average unemployment rate for 2013.

Source: bne