The Labor Department's latest job-market overview showed employers added 146,000 jobs in November. That is better than the previous two months, which were revised down, but still too weak to get many of America's 4.8 million long-term unemployed back to work.

The unemployment rate, drawn from a different survey than the payroll count, fell to 7.7% from 7.9%, the lowest level since December 2008—but mainly because people left the workforce. Part of that may be because people surveyed said they were unavailable to work while busy cleaning up storm damage.

The report Friday helped drive stocks to a one-month high, with investors interpreting the news as more confirmation that the economy is improving. Gold initially tumbled and Treasurys fell, while the Dow Jones Industrial Average gained 81.09 points, or 0.6%, to 13155.13, led by bank stocks. The yield on the 10-year Treasury note, which rises as prices fall, jumped to 1.627%, from 1.581% on Thursday.