WASHINGTON — While the number of jobs added in November was below the expectations of many, an economist with CUNA said there is good news to be seen in the unemployment rate, while NAFCU’s chief economist called the numbers a “mixed bag.”
The Bureau of Labor Statistics has released data showing American employers added approximately 210,000 jobs in November. It was the smallest number of jobs added to the I/S/ economy since December 2020, when the economy was struggling amid a surge in COVID-19 cases.
Some economists had been forecasting the November jobs report would show double the actual number of jobs would be created.
Professional and business services, transportation and warehousing, construction, as well as manufacturing, added the most jobs last month.
But as one analyst noted, the retail sector, however, which should be swelling for the holidays, shed jobs.
Sign of ‘Continued Recovery,’ But…
“The labor market added fewer than expected new jobs in November. The unemployment rate, however, has shown a marked decline to 4.2%, a sign of continued recovery,” said Senior Economist Dr. Dawit Kebede. “Labor force participation has increased for the first time in several months, showing a return to work by some who opted out due to COVID fears or lack of childcare. Emergence of the new variant Omicron, which is more transmissible than Delta, could derail progress in labor market and exacerbate supply chain disruptions if cases continue to rise.
“As inflation continues to rise, Federal Reserve Chair Jerome Powell has indicated that he is open to ending the large-scale asset purchase program sooner than anticipated,” Kebede continued. “Although the economy is not yet at maximum employment, a declining unemployment rate is a step in the right direction to fast track those changes.”
NAFCU: ‘Mixed Bag’
In his response to the numbers, NAFCU Chief Economist and Vice President of Research Curt Long said, “The November jobs report was a mixed bag and showed a wide disparity between the household and establishment surveys. The household survey showed a huge drop in the unemployment rate and a significant rise in labor force participation. But according to the establishment survey, hiring rose by just 210,000 jobs, which fell well short of expectations. It may take another month to truly determine what happened in November, but this does not change much from the Fed’s standpoint, as they eye liftoff in the first half of 2022.”