The White House's chief economist said on Friday that a drop in the November U.S. jobless rate to 7.7 percent was proof that the economy is healing from recession but that much work remains to be done.

The Labor Department reported that the jobless rate dipped from 7.9 percent with 146,000 jobs created. Many analysts had forecast an uptick in the jobless rate as a result of superstorm Sandy's impact.

"While more work remains to be done, today's employment report provides further evidence that the U.S. economy is continuing to heal from the wounds inflicted by the worst downturn since the Great Depression," said Alan Krueger, chairman of the White House Council of Economic Advisers.

In a statement, Krueger argued the Labor report showed the need for Congress to approve President Barack Obama's proposal to extend Bush-era tax cuts for those making less than $250,000 a year and raise them on the wealthy.

(Reporting by Steve Holland; Editing by James Dalgleish)