Thursday, December 2, 2021

US employers ignored the virus and increased recruitment, adding 531,000 jobs

WASHINGTON. US employers increased their workforce last month, adding 531,000 jobs, the most since July, a sign that the recovery from the pandemic recession is overcoming the virus-driven recession.

Friday’s Labor Department report also showed that the unemployment rate fell to 4.6% last month from 4.8% in September. This is a relatively low rate, although it is still well above the pre-pandemic unemployment rate of 3.5%. The report showed that job gains in August and September were not as weak as initially reported. The government revised the hiring estimate for the two months, adding 235,000 jobs.

Overall, the numbers in the jobs report indicate that the economy is steadily recovering from the pandemic recession, with healthy consumer spending pushing companies across nearly all industries to increase recruitment. While the impact of COVID-19 continues to cause severe supply shortages, fuel inflation and keep many people out of work, employers are gradually doing better at filling near-record high job advertisements.

“This is the kind of recovery we can get if we don’t get left out by the surge in COVID cases,” said Nick Bunker, director of economic research at employment website Indeed. “The rate of employment growth has slowed at times this year, but the underlying dynamics of the US labor market is clear.”

On almost every barometer, economic recovery is on track. Companies providing services in areas such as retail, banking and warehousing reported a sharp jump in sales. More and more Americans bought new homes in the past month. And consumer confidence rose in October.

At the same time, however, the country still has 4.7 million fewer jobs than it had before the pandemic flattened the economy in March 2020. The effects of the virus continue to alienate some people from traveling, shopping, eating out and going to entertainment. …

In October, hiring growth spread to nearly all major industries, with only government employers reporting job loss. Shipping and warehouse companies have created 54,000 jobs. Retailers added 35,000 units. The badly hit leisure and hospitality sector, which includes restaurants, bars, hotels and entertainment venues, has created 164,000 jobs. Producers have added 60,000 jobs despite their struggle with supply shortages, the most since June 2020.

And employers, who competed to fill jobs from a shrinking pool of job seekers, raised wages steadily, with average hourly wages jumping 4.9% in October from a year earlier, up from 4.6% in the previous month. However, even this strong growth is barely keeping pace with the recent surge in consumer inflation.

The number of long-term unemployed – people who have been unemployed for six months or more – has plummeted in recent months to 2.3 million in October from 4.2 million in April. This is still double what it was before the recession. But this is an encouraging sign because employers are usually wary of hiring people who have not worked for a long period.

Read Also:  Target to provide debt-free education to front-line workers

One disappointing point in Friday’s report is that the workforce – the number of people working or looking for work – remained unchanged in October. This suggests that the reopening of schools in September, the weakening of the virus, and the expiration of the $ 300 per week federal unemployment premium have yet to drive many people out of the job market in large numbers.

Generally, the return of many people to the workforce after a recession is a long process. There are currently 7.4 million officially unemployed, just 1.7 million more than in February 2020, before the pandemic hit the economy. Yet millions of people who lost their jobs during the recession gave up their job searches, and employers may have to raise wages and benefits to get them back to work.

During the first half of the year, the economy grew at a healthy 6.5% per year as vaccinations spread, and Americans showed a greater willingness to travel, shop, eat out, and attend entertainment. Nevertheless, the delta option provided economic growth in July-September at only 2% per annum.

More recent economic indicators have shown a brighter picture. And after several rounds of stimulus checks and other government support payments, Americans overall have amassed $ 2.5 trillion more in savings than they had before the pandemic. As this money is spent, it is likely to fuel further economic activity.

Nation World News Desk
Nation World News is the fastest emerging news website covering all the latest news, world’s top stories, science news entertainment sports cricket’s latest discoveries, new technology gadgets, politics news, and more.
Latest news
Related news
- Advertisement -