With the rise in the cases of coronavirus infection, the shutdowns have led to a fall in the employment rate. According to the figure that was out on Friday, the month of December was the fifth month witnessing a fall in the job gains.
According to the data released by the Bureau of Labor Statistics on Friday, the rate of unemployment in the US went down to 6.7%. About 245,000 jobs were added by the national economy of the country in the month of November.
Employment Challenges In The US
The Indeed economic research director, Nick Bunker, gave a statement on Friday’s employment figure. He said that there are chances of developing a positive attitude about the national economy during spring, but the same cannot be said for winters. There are a number of reasons behind this. The most important one is the fact that a major chunk of the federal relief programs are expiring this month while the cases of coronavirus are spreading as quickly and widely as ever. Also, the progress in the labor market is almost negligible.
The recent unemployment metrics show that the state of the US economy, currently, is vulnerable. This is the holiday season which brings about some possibilities of an upsurge in the economy due to consumer spending. However, it might not be the case this time as there is no control in the cases of infection which could restrict the people from coming out of their homes and blow away the business.
According to the job growth report by ADP, the processor of payroll, only 307,000 private jobs were added by the employers in November. This number is far less than the 475,000 that was expected by Dow Jones surveyed economists.