Friday, Dec 04, 2020
Short of estimates, hiring was seen concentrated in fewer industries as the pandemic continued to disrupt. Here are some of the critical highlights on the latest developments in U.S.’s labor market
• U.S. job growth slowed sharply in November, suggesting the labor-market recovery is losing steam amid a surge in virus cases and new business restrictions
• Employers added 245,000 jobs in November, down from 610,000 jobs in October, the Labor Department reported Friday
• Companies in transportation and warehousing added 145,000 jobs in November — accounting for more than half of total U.S. job gains — likely reflecting holiday hiring for e-commerce roles
• November marked the seventh consecutive month of job gains at a steadily cooling pace
• The labor market has now regained 12 million of the 22 million jobs lost at the onset of the pandemic. The labor market has now regained 12 million of the 22 million jobs lost at the onset of the pandemic
“We saw positive job gains, but I think the sentiment is largely negative because we know that we’re heading into a dark winter,” Glassdoor senior economist Daniel Zhao said. “There is a long way to go before we actually have a vaccine in hand and make a full economic recovery.”
• Employment also fell in the retail category that includes bricks-and-mortar stores
• Consumers boosted their spending in October for the sixth straight month, and new applications for unemployment benefits — a proxy for layoffs — fell last week after a recent jump
• U.S.’s trade deficit widened in October as exports and imports both rose in October for a fifth straight month, the Commerce Department reported Friday
• The trade deficit rose to a seasonally adjusted $63.1 billion in October from $62.1 billion in September. Exports rose 2.2% to $182.0 billion from the previous month, while imports rose 2.1% to $245.1 billion
• Many economists say there are persistent risks of labor-market scarring going on. Individuals facing increased child-care responsibilities or limited job opportunities, have stopped looking for work altogether during the pandemic. The labor-force participation rate, or the share of Americans working or looking for work, was 61.5% in November. That is up from April’s trough, but remains near the lowest level since the 1970s
• President-elect Joe Biden said Friday’s employment figures reflected economic weakness. “This is a grim jobs report. It shows an economy that is stalling,” he said in a statement
• The number of people on temporary layoff fell last month, suggesting employers continue to rehire workers
• But the number of the long-term unemployed — those without work for 27 weeks or more — rose by 385,000 to 3.9 million in November, accounting for 36.9% of the total counted as jobless
Resurgent virus cases are definitely putting a chill on U.S.’s labor market, amid a biggest budget deficit since World War II and a renewed hope for a bipartisan fiscal stimulus plan
Where We’ve Been Reading —
- Bloomberg
- The Wall Street Journal
