263 000 jobs were added to the U.S. Economy in 2009. The November jobs report showed that there were 3.7 million unemployed people. According to Friday’s Labor Department, it was 1%.
According to economists, the economic growth would be 200,000 and unemployment at 3.7%. Econoday polled economists to determine their forecasts. They expected a 150,000- to 275,000 increase in payrolls. For unemployment, forecasts ranged from 3.6 to 3.8 percentage.
The Labor Department’s Job Opening and Labor Turnover Survey showed that there were 10.3 million job openings at the end of October, around 1.7 vacancies for every unemployed person. Federal Reserve officials regularly cite the vacancy ratio to show that the labor market has become so tight it is likely that inflation will be a problem.
Employers have been very resilient in their demand for workers, which has increased payrolls and created vacancies, even though the Federal Reserve raised interest rates at the highest rate since decades. The bottom of the Fed’s range for its benchmark rate has gone from zero at the start of the year to 3.75 percent today. Expect a Fed 50-basis-point increase at the December meeting.
“In the labor market, demand for workers far exceeds the supply of available workers, and nominal wages have been growing at a pace well above what would be consistent with 2 percent inflation over time. Thus, another condition we are looking for is the restoration of balance between supply and demand in the labor market,”Jerome Powell, Fed chairman, said this week.
The availability of labor is still below its pre-crisis levels. This has led to a greater percentage of Americans choosing not to work. The Labor Department said on Friday that both the labor force participation rate, at 62.1 percent, and the employment-population ratio, at 59.9 percent, were little changed in November and have shown little net change since early this year.
Eighty-eight thousand jobs were added in leisure and hospitality, with 62,000 more at bars and restaurants. There were 45,000 new jobs in the health sector. Of the 42,000 government jobs, 32,000 of them were local. In spite of the downturn in the housing sector, construction employment increased by 20,000. Manufacturing added 14,000 jobs in May, which is less than the average monthly increase this year. Although headlines are focusing on tech sector layoffs, 19,000 job openings were created by information technology companies.
Transport and warehousing jobs fell 15,000 by November. Since July, it has fallen by 38,000. In November, retail jobs declined by 30,000. The general merchandise and appliance stores lost 32,000 jobs and electronics and appliances stores lost 4,000. Meanwhile, the furniture and home improvement stores saw their payrolls shrink by 3,000. Auto dealerships created 10,000 new jobs. Retail jobs are down by 62,000 since August.
Average hourly earnings of all private employees working on nonfarm payrolls increased by 0.6 percentage. Average hourly earnings increased by 5.1% over the past twelve months. That is significantly less than inflation. Average hourly earnings in private production increased by 0.7%, while nonsupervisory workers saw an increase of 0.7 percent.
In the opposite direction, figures from previous months were updated. September saw a 46,000 reduction in its value, going from 315k to 269k. September was revised down by 46,000, from 315,000 to 269,000. October was revised up 23,000. It ranged between 261,000 and 284,000. The combined employment gains of September and Oct were 23,000 below the previous reported figures.
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