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The U.S. is experiencing its lowest job recovery since December 2020. Although White House economists projected the index to be on the order of 550,000 new jobs, the reality hit with less than 210,000 during the month of November.
With the jobs regained in November, the total number of jobs created remains at 3.9 million—up 2.6%. The figure is well below pre-pandemic levels. However, Bureau of Labor Statistics (BLS) corrections in upcoming reports could add a few thousand jobs to November’s gains, as has been the case in other months.
Part-time jobs recovered were 4.3 million and were marginally changed during November. A good portion of the individuals studied by the report work part-time, as their hours were cut or they did not find full-time employment.
The number of unemployed people stands at 5.9 million. The participation rate, which includes those employed and those looking for a job, increased from 61.6 % in October to 61.8 % in November.
Job recovery by sector
The retail sector lost 20,000 jobs in November, with declines concentrated in general merchandise, apparel, and sporting goods stores. The declines outweighed increases in food and grocery stores, as well as maintenance or home improvement stores.
The good news is that the transportation and warehousing sector added 50,000 new jobs. The October and November recoveries bring the number of people working in this sector to 210,000 more than were employed in February 2020, something that helps alleviate the supply chain bottlenecks Americans are currently experiencing.
The largest number of jobs was created in the services sector, with more than 90,000 jobs in November. The largest gains were in administrative services and waste management, with nearly 42,000 jobs created between the two activities. Construction and manufacturing created 31,000 new jobs.
In the health care, tourism and lodging sector, changes were marginal compared to October. During November, nursing homes and eldercare lost more than 11,000 jobs.
Slow job recovery brings bad news for the Fed
The news comes as a bucket of cold water for the Federal Reserve, as the slowdown in the U.S. jobs recovery comes in the same week that Central Bank Chairman Jerome Powell acknowledged that inflation will not be transitory.
This phenomenon is forcing the FED to reverse its monetary policies of easy credit for companies and the government, as well as maintaining an interest rate of almost 0 for loans to commercial banks. Some analysts believe that the FED will have to raise interest rates sooner than expected, which would indicate that the rest of the U.S. jobs recovery will not be monetary.
Economist, writer and liberal. With a focus on finance, the war on drugs, history, and geopolitics // Economista, escritor y liberal. Con enfoque en finanzas, guerra contra las drogas, historia y geopolítica