Unemployment Rate Falls Dramatically to 8.6%

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The U.S. jobless rate has declined to 8.6%, the lowest overall unemployment figure in nearly three years.

The primary figure used in the unemployment rate calculation, non-farm payroll, showed an increased of 120,000 jobs in the month of November. This number is the net total increase in jobs, reflecting the creation of 140,000 private sector jobs and the elimination of 20,000 public sector/government jobs.

The increase in jobs was driven largely by hiring in the retail sector, with companies like Macy's and Toys-R-Us gearing up for the busy holiday season. While some of the newly created positions are temporary, the overall employment picture is nonetheless encouraging (after all, temp jobs count in the calculation every holiday season, and the current jobless rate is still significantly lower than it was in November 2009 or 2010).