Monday, January 24

The recovery in employment lagging behind in November in the United States

In this photo taken on Oct. 8, 2021, a sign displaying hires in Miami, Fla.

The recovery in the job market slowed markedly in November in the United States, a disappointment for the Biden administration, now under pressure with the arrival of the Omicron variant which obscures the outlook for the world’s largest economy.

Last month, only 210,000 jobs were created against 525,000 expected by economists. The most optimistic even anticipated more than 700,000 jobs created.

Several sectors recorded job losses such as retail sales including clothing stores (-18,000) or the automotive sector (-10,000), shows the report of the Department of Labor released Friday.

“Employment has increased by 18.5 million jobs since April 2020” when economic activity paralyzed by the Covid-19 pandemic had put millions of people out of work, the ministry said in a press release.

But it’s still 3.9 million below its February 2020 level, he adds.

Trade Minister Gina Raimondo tempered these bad figures, stressing that “the economy is fundamentally sound”.

“Employers are hiring and employees are re-entering the workforce,” she added on CNBC.

“This is the best report (on employment) that we have seen this year,” she said, noting that “more people are in the workforce and wages are rising.”

US President Joe Biden, who has made jobs a priority, was also due to comment on the numbers mid-morning.

Economists expected a widespread recovery, especially for the leisure and hospitality sector, which has been hit hardest by the pandemic.

– Rising wages and inflation –

But the latter remains very dependent on the evolution of the pandemic and finally hired few last month (+23,000) when the cases of Covid-19 rebounded.

In the automotive sector, the strike by employees of the American tractor manufacturer John Deere weighed heavily, leading to the loss of 10,000 jobs in the manufacturing sector.

One of the problems affecting the labor market remains education and childcare.

Schools remain penalized by a shortage of teachers and extracurricular staff to the point that some have been forced to close earlier during the Thanksgiving holiday.

The unemployment rate nonetheless fell, more than expected, falling to 4.2% (-0.4 percentage point) mainly for technical reasons since the method of calculation is different from that of job creations. Many people had also left the labor market in recent months, notably with early retirement.

The share of people working or looking for work, however, rose from 61.6% in October to 61.8% in November, suggesting that wage increases are starting to attract workers.

Over the past two months, the US economy appeared to have rebounded from a summer slowdown caused by the Delta variant and supply chain disruptions.

Now, the Omicron variant presents a new threat to the economy while there are great uncertainties about its real dangerousness and its possible resistance to vaccines.

Even if it provoked moderate symptoms, a new wave of cases in the country could put a stop to the use of restaurants and shopping centers as well as travel, which would weigh on consumption, the historical engine of growth. American.

The fear of falling ill has indeed been a persistent obstacle to the recovery of the labor market.

Faced with strong consumer demand, employers have been struggling for months with a labor shortage. They resolved to increase salaries, to grant more bonuses and social benefits.

For example, in November, average wages increased by 4.8% compared to a year ago. But this increase in remuneration does not compensate for the higher price increase.

Leave a Reply

Your email address will not be published. Required fields are marked *