Economy Adds Jobs, Unemployment Rate Falls

Washington, DC, Jan. 6, 2012 -- The economy added 200,000 jobs in December and the unemployment rate fell to 8.5%, the Labor Department said Friday.

The increase in jobs last month — the fourth biggest gain of 2011 — was higher than the 150,000 jobs expected by economists.

The unemployment rate edged down to 8.5% from an upwardly revised 8.7% in November. It was forecast to rise to 8.7% from an initially reported 8.6% in November.

Virtually every major industry added jobs, including construction, which added 17,000 jobs.

Only the government sector cut employment.