USA: Corona makes job engine stutter

The US economy loses momentum in the winter. More and more indicators are pointing to this, including the November employment report. Although the recovery process on the labor market has continued recently, the pace has slowed visibly once again: the unemployment rate fell from 6.9 percent in the previous month to 6.7 percent. Compared with the sharp 1 percentage point decline in October, the situation therefore improved only slightly in the past month. At the same time, the increase in employment fell to 245,000 in November, compared with around 610,000 in October.
The reason for this development can be quickly identified: the corona pandemic is once again on the rise and is dominating events on the labor market. The increase in new infections was dramatic in November. New lockdown measures are therefore threatening and the service sector as a job engine is stuttering. The leisure and accommodation sector, for example, has been employing only a small number of staff recently, and jobs have even been cut in the retail sector. By contrast, there was brisk demand for labor in the transportation sector, probably primarily due to the booming online trade around the Black Friday action days and the pre-Christmas business.
The outlook for the winter months is not very encouraging given the continuing high level of new corona infections. The recovery process on the labor market is likely to pause until the pandemic is better controlled again. Meanwhile, the difficult situation on the labor market is developing into a brake on the economy, especially on consumer spending. Almost 5 million more people are still unemployed than in February, and the number of long-term unemployed is rising. Financial support for households affected by unemployment is becoming increasingly urgent in view of the weakening prospects for work.

Rate this article

Thanks for your rating. Your rating:
Current average rating of the article: 1.00

Number of comments: 0

Leave a message

Your email address will not be published. Required fields are marked *

Thank you for your message
Sorry, an error has occurred