The U.S. economy has added 531,000 jobs in October 2021. This is a great leap as compared to last month’s number of 194,000 jobs only. This increase also indicates growing recovery of U.S. economy. The coronavirus cases are also declining across the country.
Positive Outlook of Economy
The economists estimated that around 450,000 jobs will be added in October. However, the number of jobs added in October outpaced all expectations. It is for the first time since July that the real number exceeds the expectation. This is also a significant jump from the last month’s number. Since, higher number of jobs are created in the market therefore the unemployment rate fell to 4.6%. Previously, it was 4.8%.
The US economy gained the required momentum and jobs were across the board. The jobs were created in leisure and hospitality, manufacturing, and transportation. The leisure and hospitality sector is the most affected sector during the pandemic recession and is short of 1.4 million workers. Concerns over Delta variant spread caused sluggish pattern in job gains. However, the economists were hoping for a rebound for revival of economy. The new unemployment claims have also fallen for more than a month. They are now at a pandemic low of 269,000.
In addition to that some businesses have been able to make progress in hiring over the past few weeks. IHS Markit’s purchasing managers’ index showed that service sector employers have created and filled the highest number of jobs. Their workforce is increasing at the quickest rate since June and they have added 1 million jobs since.
Areas of Concern
Although the job numbers of October show a bright picture. But there are still millions of people sitting on the sidelines. This is causing a shortage of workforce in the market. America’s labor force percentage stood at 61.6%. The women participation is also depressed. This is due to factors like uneven distribution of child-care, responsibilities of working parents as well as job losses. The women are disproportionately employed.
Diminishing cases of coronavirus has motivated people to get back to work. The employment numbers are portraying signs of economic growth and recovery. However, the growth will be slow and steady and will take time to be a pre-pandemic level.
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