U.S. Labor Market Posts Worst Month This Year As 7.7 Million Americans Remain Unemployed

It appears that the United States added back a lower-than-expected 194,000 job openings in September. This is another month of decline and the worst monthly performance since December since experts have feared that the spread of the virus has hindered the economy’s recovery.

The job growth in September was less than the 500,000 new jobs economists expected, According to Bloomberg figures, and also dropped from 366,000 in August.

Despite the weak job growth in the United States, the number of jobless individuals across the United States is decreased from 8.4 million in August to 7.7 million. That’s significantly higher than the 5 million in February, the federal government declared.

The rate of unemployment at 4.8 percent dropped from 5.2 in August. It was reaching its lowest level in over an entire year. However, it was still significantly more than the pre-pandemic level of around 3.5 percentage.

In a note to the morning, Jason Pride, chief investment officer for private wealth at the advisory firm Glenmede and Glenmede, cited upward revisions in the numbers of new jobs created between July and August (totaling around 169,000) to explain the 0.4 percent decrease in the rate of unemployment, that is now below 5percent at the lowest level since March last year.

According to the government report, the government reports, significant job growth was seen in leisure, hospitality, transport, retail, and relaxation, while public education decreased on an annual basis.
In the overall picture overall, all in all, the U.S. economy has added to the economy 17 million jobs of the jobs lost in the shutdowns caused by pandemics first forced businesses to cut back on personal business during March and April the previous year.

“The jobless rate was disappointing, falling short of expectations even lower than the poor number from the previous month.” Brad McMillan, chief investment officer at Commonwealth Financial Network, wrote in a brief note for the morning and added that the report “raises real concerns regarding growth until the end of this year.” However, McMillan points out that labor demand is strong with hours of work and the average hourly earnings climbing up. He also says the issue could be related to the supply of labor, that is, the number of people seeking work. The rate of involvement in the labor force at 61.6 percent fell 0.1 percentage point from August but is 1.7 percent lower in February 2020. “People are still hesitant about back to work,” McMillan says. However, he says the “trend may be changing” given that the current Delta variant-spurred phase of the pandemic has begun to ease.

Despite a promising report on unemployment released Thursday afternoon, a range of indicators in recent weeks have indicated the ongoing challenges of job creation. After adding over 1 million job openings in July, the employment market only added 366,000 new jobs in August, significantly lower than the forecast of nearly 1 million additional jobs. “The Covid-19 delta variant has slowed the employment market’s recovery,” Mark Zandi, the chief economist at Moody’s Analytics, said of the low-quality employment data in line with experts who are concerned that the resurgence of the virus has brake the economy’s recovery. New unemployment claims also came more than forecast for the three weeks of September.

In a note to the morning press, Jamie Cox, a managing partner of Richmond located in Virginia, Harris Financial Group, said the shaky job numbers could raise doubts about what happens when it is the case that Federal Reserve begins tapering, or reducing its stimulus measures for the economy at the end of the year, as is suggested in the last month. “There are a lot of positives in this report, including an increase in hourly wages but it’s is not enough to cover up the fact that the job market is still a mystery due to the numerous Crosscurrents that are linked to Covid,” Cox said. Policy measures for monetary policy have aided the market rise to new heights during the outbreak, and fears about whether the Fed might end its support too fast have created pockets of volatility over this year.
The un-employment rate reached a record high of 14.7 percent during the peak of pandemic anxiety on April 20, 2020.

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Robert Scoble
Robert is the assistant managing editor for HC News, overseeing coverage of markets, companies, strategy and business leaders. Originally from Boston, Scoble began his journalism career in 1997 & now resides outside New York.

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