unemployment
The picture in the US labor market is mixed
The US labor market is not showing a clear trend. Photo: Tony Dejak / AP / dpa
© dpa-infocom GmbH
The US labor market is not showing a clear trend. New jobs were created, but fewer than expected. However, the labor market is still a long way from pre-crisis levels.
The US labor market did not present a clear picture in November. The economy created additional jobs again, but much less than expected by experts. In contrast, unemployment surprised with a significant decline.
According to the numbers, the dollar nevertheless came under pressure. As the Ministry of Labor announced on Friday, the increase outside of agriculture was 210,000 jobs compared to the previous month. Experts had expected an increase of 550,000 jobs on average. The labor market collapsed during the Corona crisis. In the meantime he has recovered. However, it is far from full employment, as it was before the crisis.
The unemployment rate fell significantly compared to the previous month by 0.4 points to 4.2 percent. It is the fifth decline in a row. Experts had expected a decrease to 4.5 percent on average. About 6.9 million US citizens are unemployed, according to the Department. Before the crisis it was over a million fewer. The quota was 3.5 percent in February 2020.
Wage development weaker than expected
Meanwhile, wages developed weaker than expected. The average hourly wages increased by 0.3 percent compared to the previous month. Compared to the same month last year, the increase was 4.8 percent. Analysts had expected slightly higher rates.
“We can look forward to a better, happier New Year,” said US President Joe Biden. “But I also know that despite this progress, families are concerned or worried about Covid. They are concerned about the cost of living and the economy in general. You are still unsettled. ” It is not enough to know that there is progress – people have to feel it too.
The labor market plays a major role in the Fed’s monetary policy. In November, the Fed began to scale back its extremely loose monetary policy by buying fewer securities such as government bonds. This week Fed Chairman Jerome Powell hinted that inflation could accelerate this pullback. Other central bankers have meanwhile agreed.