December 8, 2022

US job growth regains momentum; The labor shortage persists

  • Non-agricultural wages increase by 531,000 in October
  • The unemployment rate is declining from 4.8% to 4.6%
  • Average hourly earnings increase of 0.4%; Increased by 4.9% year-on-year
  • Labor participation rate remains unchanged at 61.6%

WASHINGTON, Nov. 5 (Reuters) – U.S. employment rose more than expected in October as the reverse winds of the summer Govt-19 outbreak slowed and provided additional evidence that economic activity had picked up speed again at the start of the fourth quarter.

The Department of Labor’s closely watched employment report on Friday, however, said the labor shortage persisted even after federal-funded unemployment benefits expired in early September and schools were fully open. The labor participation rate was equal.

However, after the delta variation of the corona virus and the scarcity of goods on an economic scale restrained its growth in the third quarter, the service sector activities added to the broader consumer confidence in the broader employment gain and the more positive picture of the economy. Slow pace for more than a year.

“A cloud on the horizon is a stubbornly depressed participation rate,” said Seema Shah, chief strategist at Primary Global Investors. “At this point, we need to see a recovery in participation, with reduced benefits, a return to face-to-face schooling and a drop in coveted rates.”

Companies survey shows that non-farm wages increased by 531,000 jobs last month. Data for September was greatly modified to show that 312,000 were generated instead of the previously announced 194,000. According to a Reuters poll, economists predict that wages will increase by 450,000 jobs.

Employment in February 2020 is 4.2 million jobs less than its peak. This year’s job growth is averaging 582,000 per month.

Leisure and hospitality businesses led to an increase in hiring last month, creating 164,000 jobs. Wages also rose in the professional and business services, transport and warehousing, health, wholesale, financial and mining sectors.

Production added 60,000 jobs, with 28,000 positions in motor vehicle manufacturers. Construction wages increased by 44,000 jobs.

But state and local government education lost 65,000 jobs. The government said epidemiological staff fluctuations in education have distorted normal seasonal patterns, making it challenging to explain changes in employment in the sector. The shortage of bus drivers and other support staff is well documented. Overall government wages fell by 73,000 jobs.

U.S. stocks started to rise. The dollar rose against a basket of coins. U.S. Treasury prices mixed.

Millions are at home

On May 8, 2020, a hand car wash was found on a street in Miami, Florida, USA. REUTERS / Marco Bello / File Photo

The details of the small survey of families were also exciting, with strong employment gains. The unemployment rate fell to 4.6% last month from 4.8% in September. Although 104,000 people joined the labor force last month, millions remained outside, making it difficult for employers to fill the 10.4 million jobs that opened at the end of August.

The labor participation rate, or the ratio of working-age Americans to job-seekers, has not changed to 61.6%. It comes from a narrow range

61.4% to 61.7% from June 2020. About five million people have left the labor force since the outbreak began.

The number of unemployed for 27 weeks or more was down 357,000 to 2.3 million. 31.6% of the 7.4 million people officially unemployed last month.

The labor market has been blamed for disruption by care needs during epidemics, fears of the corona virus, early retirement, massive savings and career changes and the aging population and the recently expanded unemployment benefits. While many who left cities during epidemics have not yet returned, there may be a mismatch between open work and location.

Federal Reserve Chairman Jerome Powell told reporters Wednesday that “these restrictions on the distribution of labor will decrease with further progress in controlling the virus, supporting gains in employment and economic activity.”

Central Bank Announced The money paid into the economy through monthly bond purchases will begin to be re-measured this month.

Jan. There are concerns that the White House’s vaccination order, which comes into force on April 4, will apply to federal contractors and businesses with 100 or more employees, which could increase labor shortages.

Strikes have intensified as workers exploit the tight labor market to demand higher wages and better conditions. About 10,000 Deere & Co (DE.N) In the middle of the period when the government inspected homes and businesses for the employment report, workers were not affected by the October payroll.

With average hourly earnings up 0.4%, the struggle for workers continued to drive up wage growth. It raised its annual average from 4.6% in September to 4.9% in October.

This, along with record savings, will help support consumer spending during the holiday session, although salary inflation and a shortage of goods are high.

Report by Lucia Mudigani, editing by Sisu Nomiyama

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