September employment report shows slow growth

Texas News Today

Employers are still struggling to find workers, as many unemployed in the pandemic have yet to start looking for them.

WASHINGTON – US employers added just 194,000 jobs in September. This is the second tepid profit in a row, indicating that the pandemic is still under control of the economy and many companies are struggling to fill millions of unresolved jobs.

A Friday report from the Labor Ministry also showed the unemployment rate fell to 4.8% from 5.2% in August.

The economy shows some signs of emerging from the drag of the coronavirus delta version, new confirmed COVID-19 infections have declined, restaurant traffic has increased slightly, and consumers are eager to spend. Work.

However, when September began, employers are still struggling to find workers, as new infections are still high and many people who have lost their jobs in the pandemic have yet to start looking for them. Supply chain bottlenecks have gotten worse, factories have slowed down, homemakers have been curtailed and some store shelves have been emptied.

Many economists still believe that most of the nearly 3 million people who lost their jobs due to a pandemic and stopped looking for jobs will resume their search as their COVID-19 declines. They say that it took years after the 2008-2009 recession that the percentage of people working or looking for jobs returned to pre-recession levels. The government does not consider people unemployed unless they are actively looking for jobs.

Some of the factors that detract from the many unemployed are beginning to subside. For example, according to a Census Bureau survey, the number of people not working because they had to stay home to care for their children dropped by half in September compared to June. The last time when many schools were closed and virtual learning was being done, this number had barely come down. New census data show that more parents, especially mothers, have returned to work last month, when the school year began and children returned to school.

In addition, Indeed found that the percentage of unemployed Americans who wished to get a job at the start of the school year was more than double what it was two months ago, according to an August survey on the job listing website. I met.

But there are also signs that it may be premature to expect a flood of parents to rejoin the labor market. In a recent speech, Federal Reserve Board member Lyle Brainard said the COVID-19 outbreak in late September closed 2,000 schools in 39 states for an average of six days.

Several increased unemployment benefits, including a $300 weekly federal grant and the first program for gig workers and those who have been unemployed for more than six months, ended in early September. So far, the termination of these programs seems to have had a negligible effect on the number of people seeking work.

The governors of about 25 states ended the $300 benefit before the national end in September. A study by economists at Goldman Sachs found that unemployed people looking for a job were more likely to find a job when their benefits were exhausted. However, the initial cutoff did not allow viewers to start searching again, Goldman concluded.

Another reason for the labor shortage is the increase in housing wealth and equity portfolios since the pandemic, and the rise in retirements of older and wealthier workers who are able to accumulate savings. Is. Goldman Sachs estimates that about 1.5 million people have retired, which would not have happened before the pandemic disrupted the economy. Economists estimate that many of these people are likely to remain retired.

Meanwhile, the fear of COVID still persists for some job seekers, especially those who were previously engaged in public service jobs in restaurants, bars, hotels and retail stores.

September employment report shows slow growth

Source link September employment report shows slow growth

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