The latest drop in unemployment came entirely from short-term job-seekers finding work but did nothing to reduce the number of long-term unemployed, a top Obama administration aide told CNBC on Friday.
There are "just as many long-termed unemployed as ever, that's why it's so important to be extending unemployment insurance," Jason Furman, chairman of the White House's Council of Economic Advisers, said in an interview on "Squawk on the Street."
The Labor Department said Friday that the unemployment rate fell to 7 percent in November, a five-year low, and emergency jobless benefits for 1.3 million unemployed people will run out on Jan. 1 if Congress cannot agree on an extension.
(Read more: Taper tamper: Job creation climbs in November)
Furman also defended the role that unemployment insurance plays in getting people back into the workforce.
"One of the great things about unemployment insurance, you have to be looking for a job," Furman said. "It keeps people in the labor force, motivated and looking, and helps them get back on their feet."
— By CNBC's Jeff Morganteen. Follow him on Twitter at @jmorganteen and get the latest stories from "Squawk on the Street." Reuters contributed to this report.