The U.S. economy added only 245,000 jobs in November, sharply short of expectations and pointing to a slowdown in the labor market recovery from the coronavirus epidemic as the boom in new infections triggered another wave of stagnation by the state and local governments.
The Ministry of Labor’s monthly payroll report, released on Friday, also showed the unemployment rate fell to 6.7% from 6.9%. Economists interviewed by Refinitiv expected from the report that unemployment fell to 6.8% and the economy provided 469,000 jobs.
The numbers come in the middle of a wave of coronavirus cases and the deadliest three-day phase of pandemics since the pandemic began earlier this year. More than 100,000 people will be hospitalized in the United States, and more than 210,000 new cases were reported on Thursday alone, according to data released by Johns Hopkins University.
A rigorous forecast from the Center for Disease Prevention and Control shows that up to 19,500 people could die in COVID-19 this Christmas week.
12 MILLION AMERICANS LOSE UNEMPLOYMENT BENEFITS AFTER CHRISTMAS
“This is a disappointing report, and a report that shows that the third wave of the pandemic has a greater impact on recording than thought,” said Brad McMillan, investment director at Commmonwealth Financial Network. “The prospect of a continued strong recovery in consumer spending could be jeopardized by a significant decline in private job creation. This is a wake-up call from Congress.”
U.S. employers hired 610,000 new employees in October, with revised data showing that November is the fifth consecutive month, so job growth has slowed since the economy added a total of 7.5 million workers in May and June.
Overall, the United States has restored roughly half of the 22 million jobs lost in the first two months of the pandemic. There are still about 9.8 million more Americans than in February before the crisis began.
Danieldoor Zhao, an economist at Glassdoor, says at the current rate, the U.S. will not return to pre-crisis employment levels by 2024.
“With the outbreak of the epidemic, the labor market recovery is clearly slowing down and cracks are starting to appear,” he said, adding: “Today’s report is a definite reminder that we are not yet out of the woods.
There has been significant job growth in the transportation and warehousing industry, which was expanded by 145,000 new employees last month, boosted by the growth of couriers and couriers and warehousing and warehousing. Professional and business services rose by 60,000, with roughly half of the profits coming from temporary relief services, while health care created 46,000 jobs.
But the leisure and hospitality industry, which was one of the hardest hit by the pandemic, added just 31,000 jobs last month, while retail lost 35,000 jobs – a sign of trouble ahead of the holiday shopping season.
PELOSI, SCHUMER URGE MCCONNELL TO LAUNCH CORONAVIRUS DISCHARGE SPEECHES
After months of stalemate, Congress is taking the final step this week to sign a corona virus clearance agreement before the end of the year. Democratic officials backed the $ 908 billion proposal presented earlier this week by a group of bipartisan senators and backed by the House Problem Solvers Caucus, a 50-member House of Representatives evenly divided between Republicans and Democrats.
With only five legislative days left on their calendars, it is unclear whether lawmakers will be able to overcome the key points that have confused them since the summer.
During a congressional statement this week, Federal Reserve President Jerome Powell reiterated his call to lawmakers to adopt another stimulus package that will help the economy weather the winter.
“It would be very helpful and very important to have additional budget support available to the economy so that we can really experience us in the winter,” Powell said. “I think we have made a lot of progress faster than we expected and now we have a high climax in COVID matters and that could have a serious impact on economic activity. People may retire from activities in which they have participated or may not engage in new activities. “
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