US (Washington Insider Magazine) -The US Bureau of Labor Statistics November Jobs report was released on Friday, December 3rd showing an overall reduction in unemployment, but falling short of economists’ predictions. According to the report, the US economy added 210,000 jobs in November bringing the unemployment rate down by 0.4%.
While most economists suggest the report is positive, they acknowledge that November was the slowest growth in jobs in the calendar year. In fact, November’s job report fell significantly short of predictions. Economists expected November to follow the trend seen in October where the US economy added 531,000 jobs. Despite disappointing numbers, the overall labor participation rate increased to 61.8% the highest level since the start of the coronavirus pandemic.
COVID-19 cases continue to surge in the United States while the delta wave continues. At the same time, the new omicron variant has been detected in 17 U.S. states creating more uncertainty in industries that were most notably deterred by the pandemic.
Industries that require face-to-face contact saw the most significant impact, suggesting that COVID may be one of the factors slowing the recovery. For example, the retail industry is the only sector where jobs decreased in November, with a reduction of 20,400. Meanwhile, in the leisure and hospitality industry, jobs growth was a modest 23,000 jobs compared with 170,000 in October.
By contrast, the business and professional services industry saw the largest growth with 90,000 jobs added in October.
Labor analysts believe there is still room for employment growth, with many American workers still not returning to the workforce. Despite relatively low growth in November, experts suggest the service industries are the areas where employment still lags pre-pandemic levels.
The Biden administration’s economic recovery has faced increased scrutiny as inflation impacts both consumers and small businesses. According to a poll by CNBC, only 34% of small business owners approve of the administration’s handling of the economy citing inflation and supply chain as their top concerns. While Biden officials believe they have made significant strides with the economy, they acknowledge that many members of the middle class may not feel it.
Officials from the Fed believe that the economy has recovered in terms of GDP, which may result in a change in monetary policy that would increase interest rates. While the policies have yet to roll out, November’s job report may indicate the slowdown of job growth going into 2022.
