Numbers: The United States gained 210,000 new jobs in November, despite more aggressive steps taken by companies to hire people, but disappointingly showing the worst labor shortage in decades. The increase is still a drag on economic recovery.
Increased hiring (minimum in a year) far fell short of Wall Street’s expectations. Economists polled by The Wall Street Journal predicted 573,000 new jobs.
Sarguatieri, Senior Economist at BMO Capital Markets, said:
Meanwhile, the unemployment rate in the United States fell from 4.6% to 4.2%, reaching a new pandemic low. However, economists say the official unemployment rate is likely to underestimate the actual unemployment rate by a few percent.
Another promising sign is that the size of the workforce has grown significantly. Approximately 594,000 people returned to the workforce in November, based on another survey of households.
The so-called participation rate rose by 2 ticks to 61.8%, the highest level since the start of the pandemic.
Household polls also showed that far more 1.14 million people found jobs in November. As a result, the unemployment rate dropped sharply. Still, household data is more volatile than the salary surveys of companies that the government has led to official employment growth.
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Companies have sought to address labor market shortages by increasing wages and allowances. Hourly wages surged last month, with wages rising 4.8% over the past year. The last time wages rose sharply before the pandemic began in the early 1980s.
Big picture: Companies are still unable to attract workers fast enough to meet their needs.
At current employment paces, US employment levels may not return to pre-crisis trends for more than two years. The longer the labor shortage, the longer it will take for the US economy to fully recover.
What is a holdup?
The number of people who retired during the pandemic is unusually high, and millions more are still anxious to return to work. They are afraid of exposure to coronavirus, and are worried that they may have to stay home to take care of their children, especially if a new strain of coronavirus emerges and closes the school again.
The increase in the workforce in November was good news, but it is not yet known if the upward trend will continue.
What are they saying? “This report is the story of two studies,” said Nick Bunker, Director of North American Economic Research at Indeed Hiring Lab.
“Household surveys show an accelerating increase in employment, a return of workers to the workforce, and low levels of involuntary part-time work,” he said. “Payroll surveys show that employment growth has slowed significantly, especially in the Covid-affected sectors.”
Market reaction: Dow Jones Industrial Average
And S & P500
Set to open higher on Friday trading. After the report, the market expanded profits.
U.S. adds 210,000 jobs disappointed in November in the face of a serious labor shortage
http://www.marketwatch.com/news/story.asp?guid=%7B20C05575-04D4-B545-77BE-2E86680F830A%7D&siteid=rss&rss=1 U.S. adds 210,000 jobs disappointed in November in the face of a serious labor shortage