WASHINGTON - The US unemployment rate plunged to a five-year low 7% in November with the creation of 203,000 new jobs, the Commerce Department announced on Friday.
The sharp drop in the jobless rate, from 7.3% in October, was unexpected and raised the odds that the Federal Reserve could soon begin moving away from its huge stimulus plan.
The job figures follow the announcement earlier this week that third-quarter gross domestic product in the United States expanded by 3.6%, well above earlier estimates of 2.8%.
The quickening pace of recovery suggests that the Fed could announce some "tapering" of its quantitative easing (QE) programme as soon as its next meeting on Dec 17 and 18.
However, most economists believe more decisive action is not likely until early next year.
For more than a year the Fed has been purchasing $85 million a month worth of bonds in the market in order to get cash circulating for lending, investment and other economic activity.
If the Fed stops flooding markets with money, the impact could be felt around the world, as stocks and bonds in emerging markets, including Thailand, have benefited from QE for many months.