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FOX Business’s Jackie DeAngelis and Barron’s roundtable host Jack Otter are weighing down the labor market’s recovery with another possible shutdown.
The U.S. economy added just 245,000 jobs in November, significantly missing expectations and signaling a slowing labor market recovery after the coronavirus pandemic, as a surge in new infections sparked a new wave of closures by 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 polled by Refinitiv expected the report to show unemployment fell to 6.8% and the economy added 469,000 jobs.
The figures come amid a wave of coronavirus cases and the deadliest three-day period since the pandemic began earlier this year. More than 100,000 people are hospitalized in the United States and more than 210,000 new cases were reported Thursday alone, according to data released by Johns Hopkins University.
A strict prediction from the Centers for Disease Control and Prevention shows that up to 19,500 people could die from COVID-19 during Christmas week.
12 MILLION AMERICANS FACING THE LOSS OF UNEMPLOYMENT BENEFITS AFTER CHRISTMAS
“This is a disappointing report, and one that shows the third wave of the pandemic is having a bigger effect on hiring than previously thought,” said Brad McMillan, chief investment officer for Commmonwealth Financial Network. “With the significant decline in job creation in the private sector, the prospects of a continued strong recovery in consumer spending may be threatened. This is a wake-up call to Congress.”
U.S. employers made 610,000 new hires in October, according to revised data, leaving November the fifth consecutive month in which job growth has slowed since the economy added 7.5 million workers combined in May and June.
In total, the United States has recovered about half of the 22 million jobs lost in the first two months of the pandemic. There are still about 9.8 million more Americans out of work than in February before the crisis began.
At the current rate, the United States will not return to pre-crisis employment levels until 2024, according to Glassdoor economist Daniel Zhao.
“As the pandemic increases, the recovery in the labor market is clearly slowing down and cracks are starting to appear,” he said, adding: “Today’s report is a strong reminder that we are not out yet. wood. Even with a vaccine on the horizon, many are bracing for a long winter ahead. “
Notable job gains were in the transportation and warehousing industry, which added 145,000 new employees last month, boosted by an increase in couriers and messengers, as well as warehousing and transportation. storage. Professional and business services increased by 60,000, with about half of the gains coming from temporary help services, while health care created 46,000 jobs.
But the leisure and hospitality sector, one of the hardest hit by the pandemic, created just 31,000 jobs last month, while the retail industry lost 35,000 jobs – a potential sign of problems ahead of the pivotal holiday shopping season.
PELOSI AND SCHUMER URGE MCCONNELL TO RESTART CORONAVIRUS DISCUSSIONS
After months of deadlock, Congress is making a final push this week to secure a coronavirus relief deal before the end of the year. Democratic officials have given their backing to a $ 908 billion proposal unveiled earlier this week by a bipartisan group of senators and endorsed by the House Problem Solvers Caucus, a 50-member group split evenly between Republicans and Democrats.
With just five legislative days on their calendar, it’s unclear whether lawmakers will be able to overcome the main sticking points that have confused them since the summer.
Speaking to Congress this week, Federal Reserve Chairman Jerome Powell reiterated his call for lawmakers to pass yet another stimulus package to help the economy through the winter.
“It would be very helpful and very important if there was additional tax support for the economy, really to get us through the winter,” said Powell. “I think we’ve made a lot of progress faster than expected, and now we have a big spike in COVID cases, and that can weigh on economic activity. People may withdraw from activities they were involved in or not engage in new activities. “
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