A few months after the economic opening of the country and the quick decline of the unemployment rate, the rate of hiring has slowed significantly.The Labor Department reported Friday that employers added 245,000 jobs in November, fewer than half the number created in October. The pace of hiring has now diminished for five straight months.While many of those knocked out of a job early in the pandemic have been rehired, there are roughly 10 million fewer jobs than there were in February.
One of the longer-lasting wounds is likely to be a large pool of people, many still of prime working age, who drop out of the labor force, remaining sidelined even when opportunities return. The share of those 16 and older who are in a job and actively looking for one fell by 61.5 percent in November and continues to remain far below levels seen before the pandemic. This drop is most seen in women, who are heavily significant in the service industry that hit hardest during the pandemic have left the labor market to take on family responsibilities. It is not just women are being hit the hardest with this stall in employment. Unemployment among Blacks and Hispanics are significantly higher than it is for whites.
There is some positives in the labor market. The biggest gains have been in warehousing and moving goods and in health care jobs while jobs in hospitality, travel and leisure continue to struggle. But job creation is slowing with millions of Americans still unemployed so if job creation doesn’t pick up, it will take more than three years to get back to where the labor market was before the pandemic hit.
https://www.nytimes.com/2020/12/04/business/economy/november-jobs-report.html
I think that unemployment is something that will grow slowly. The economy is not at full potential yet but will hopefully recover in the upcoming months. As we see the economy recover, we will hopefully behind too see a trend of decreasing unemployment rates soon. The decreased unemployment could also be due to the fact that small businesses were greatly damaged during the pandemic and many went out of business.
ReplyDeleteThe employment will take time to come back after all the hardships businesses have faced. I don’t think employment will pick back up until jobs resume in the travel, hospitality and leisure industries.
ReplyDeleteLike Ali and Nicole said, it will take some time before the unemployment numbers reach their previous levels. The job market will turn around eventually and those people will be able to be hired again. Since they already have many qualifications, they will have no problem finding jobs later on.
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