Kansas City, Missouri 2021-12-03 09:39:32 –
Washington (AP) — US employers slowed employment in November, adding 210,000 jobs. This is the lowest monthly increase in almost a year.
However, Friday’s report from the Ministry of Labor also shows that the country’s unemployment rate has fallen from 4.6% to 4.2%, indicating that more people have reported that they are working. .. This is historically low unemployment, but still above the pre-pandemic level of 3.5%.
Overall, November employment statistics appear to be resilient, despite being threatened by rising inflation, labor and supplies shortages, and the potential impact of the Omicron variant of the coronavirus. It shows the market and economic recovery.
For months, employers have been suffering from a labor shortage, as many people who have lost their jobs in the pandemic have not returned to the workforce for a variety of reasons. But last month, more Americans were removed from the bystanders looking for a job and were generally hired immediately.
That positive trend suggests that November was a healthier month for employment growth than the modest 210,000 profits the government reported on Friday in a corporate survey. The unemployment rate is calculated from another survey of households. The survey found that far more 1.1 million people were employed last month. The results of the two surveys are usually consistent in the long run, but can diverge sharply in a particular month, such as November.
According to a household survey, the number of unemployed Americans dropped to 6.9 million in November, well below the pre-pandemic 5.7 million. In addition, the average wage that employers are raising to attract and retain workers has risen sharply to 4.8% from a year ago.
A government survey showed that hiring at restaurants, bars and hotels slowed last month, increasing employment by just 23,000 from 170,000 in October. This may reflect the impact of an increase in COVID-19 cases last month and a decrease in outdoor diet.
Retailers have cut 20,000 jobs. This shows that holiday employment was not as strong as it used to be. However, the transportation and warehousing company has added 50,000 positions. This shows that online retailers and shippers expect healthy online shopping.
The work outlook for the coming months has become more ambiguous with the advent of Omicron variants. Little is known about Omicron, and widespread business closures are considered unlikely. Still, Omicron could discourage some Americans from traveling, shopping, and eating out in the coming months, slowing the economy.
But so far, Americans are free to spend and the economy is projected to grow at an annual rate of 7% in the last three months of this year, up from the 2.1% pace of the previous quarter when the delta variant was sluggish. I’m recovering. growth.
Nearly 600,000 people joined the workforce last month, and an increasing proportion of Americans are working or looking for a job. If that long-awaited development continues, it could point to stronger employment growth in the future.
The proportion of Americans in the workforce has risen from 61.6% to 61.8%, the first significant increase since April.
Despite the steady decline in unemployment this year, the percentage of Americans who are working or looking for a job has barely risen. The shortage of job seekers tends to limit employment and force businesses to pay more to attract and retain employees. Higher wages help maintain spending and growth. However, if prices are raised to offset the high labor costs companies often do, it can also contribute to inflation.
As a result, there are about 3.6 million fewer employees than before the pandemic. However, only about one-third of them are actively looking for a job and are classified as unemployed. The remaining two-thirds are no longer job hunting and are not counted as unemployed. The government classifies people as unemployed only if they are actively seeking work.
Whether more people start looking for a job is an important issue for the Federal Reserve. If the percentage of people who have or are looking for a job hasn’t increased significantly, it suggests that the Fed is approaching its maximum employment goal.
Inflation is 30 years high, well above the Fed’s annual target of 2%, so meeting employment obligations will put more pressure on Chair Jerome Powell to raise interest rates sooner or later. .. Doing so will make the loan more expensive for many individuals and businesses.
About half of those who retired have retired. The other half includes parents, mostly mothers, who were at home to take care of their children during school closures and day care. Childcare is either unavailable or out of reach for some of these women. Some other people have become self-employed. And others continue to delay their job search for fear of being infected with COVID-19.
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