[ad_1]
Hiring in the United States fell well below expectations last month, with employers creating just 194,000 jobs compared to the expected 500,000, with the delta variant slowing the pace of the recovery.
The unemployment rate edged down to 4.8%, the Labor Ministry said on Friday, but the latest hiring data comes after dismal employment growth seen in August as well. Some 366,000 jobs were added in August, according to revised data released Friday, and more than one million jobs were created in July.
The impact of the more contagious delta variant on the recovery is likely reflected in the disappointing numbers, as the labor market remains at the mercy of the virus which saw further peaks at the start of the month when employment data were collected. The unemployment rate remains high compared to the 3.5% before the pandemic observed in February 2020.
President Joe Biden touted the slight drop in the unemployment rate in remarks Friday after the report was released, calling it “a significant improvement from when I took office and a sign that our recovery is progressing, even in the face of a pandemic of COVID “. The unemployment rate was 6.3% in January 2021 when Biden took office.
While Biden admitted he would like to see “faster” job growth after two months of slower-than-expected gains, he praised “real progress” in the labor market.
“We are making steady and steady progress,” the president said. “And thanks to the bipartisan agreements, we are making progress in funding the government and raising the debt ceiling, so that people continue to receive their social security checks, the military continue to be paid, and much more.”
Finally, the president seized the opportunity to defend his spending record and to present his vast “Build Better” program, declaring: “We risk losing our advantage as a nation if we do not move our infrastructure”.
“We need to regain the momentum that we have lost,” the president said.
Notable job gains took place last month in the hard-hit leisure and hospitality industry, which added some 74,000 jobs. Employment in leisure and hospitality is still down by some 1.6 million jobs, or 9.4%, compared to data before the COVID-19 shock.
Job growth in September was also seen in professional and business services (where hiring increased by about 60,000), retail trade (which saw an increase of 56,000 jobs) and transportation and warehousing (which gained 47,000 jobs).
Some labor economists say that despite the disappointing figures in the latest jobs report, there is still reason to be optimistic about the future of the labor market.
“Despite the weak growth in September, today’s report is a glimpse in the rearview mirror,” Daniel Zhao, senior economist at recruitment site Glassdoor, said Friday in a comment shared with ABC News. “With the hindsight of the Delta Variant wave, the worst of the Delta wave may be behind us.”
Meanwhile, disparities in the impact of the pandemic are still reflected in the latest data from the Ministry of Labor. The unemployment rate for white workers was 4.2% last month compared to 7.9% for black workers and 6.3% for Hispanic workers.
Zhao also noted that the latest labor market report is the first to reflect the expiration of the improved federal unemployment benefits, but the unemployment rate only dropped slightly to 4.8%.
“The deceleration in job growth in September is likely to disappoint employers and policymakers who hoped that the expiration of enhanced UI benefits would put Americans back into the workforce,” he said. he declares. “Ultimately, the September report will not be the last word in the debate on the impact of unemployment insurance benefits.”
“As we head into the fall, resuming school reopens and the expiration of UI benefits could push some workers back into the workforce, but searing labor demand is likely to rise. keep labor shortages ahead of employers, ”Zhao added.
The demand for labor is partly reflected in the rise in wages observed in recent months. In September, the hourly earnings of all employees increased 19 cents to about $ 30.85, and the average hourly earnings of production and non-supervisory employees rose 14 cents to $ 26.15.
Meanwhile, about 13.2% of workers teleworked last month due to the pandemic, the DOL said, reflecting a trend that economists say is expected to stay there even when the threat of the virus recedes.
Libby Cathey of ABC News contributed to this report.
[ad_2]
Source link