Unemployment rate drops
Recovery in the US job market continues
During the spat to the outcome of the presidential elections keeps US in suspense, there is at least positive news from the labour market. The development was considerably better than expected. Overall, the Situation remains critical.
The situation on the U.S. job market brightened in October, in spite of a new Corona-shaft in a surprisingly clear way. The unemployment rate fell from 7.9 percent in the previous month to 6.9 percent, the U.S. labor Department announced on Friday in Washington.
Analysts had only expected a decline to 7.7 percent. The information provided by the authority, according to the companies created outside of the agricultural sector in the past month 638.000 new Jobs – thus the experts ‘ forecasts were exceeded when the structure is clear. In addition, the Jobzuwachs in the previous two months, was later corrected to a total of 15,000 jobs to the top.
Nevertheless, the labour market in the world’s biggest economy remains fragile and far from pre-crisis levels by far. For comparison: Before the pandemic, the unemployment rate had amounted to only 3.5 percent. The number of unemployed people fell in October by 1.5 million to 11.1 million. It is the sixth decline in a row. But In February the number was only 5.8 million.
The Corona-crisis had placed the US economy in the meantime in large Parts of lame, what was the unemployment rate in April to about 14 percent in the height of shoot. So you reached the highest value since records began after the Second world war. Since then, it goes uphill steadily, with new Corona threaten escalations of the Situation on the job market, however, critical.
The recovery after the large waves of redundancies, at the beginning of the crisis, is progressing only with difficulty, the pace of the reconstruction of the employment, the job growth in October, the lowest in six months. “The job gains from may to October, now accounts for slightly more than half of the slump up for it,” says Analyst Bernd Krampen by NordLB.
“Full employment in the United States is still far,” said expert Ulrich word mountain of Helaba. “The workplace building is progressing, but only in small steps”, is chief economist Thomas Gitzel by VP Bank to consider. Since March, a reduction of more than ten million Jobs in the United States still to book.
How strong is the Corona-crisis continues to weigh on, was on Thursday from new data from the U.S. Department of labor shows. 21.5 million people, therefore, last a Form of unemployment assistance. In the past week 751.000 were added – this is still a dramatically high value.
The strong declines in the unemployment rate should not be overestimated also. Because the statistics do not include all the Americans who are unemployed and like to work. Many have abandoned their job search, discouraged and will not be recorded. “The fact that very many people have adopted from the labour market is distorted, the unemployment rate is almost three percentage points down,” estimates chief economist Ulrich Kater from Dekabank.
Also, the US Federal Reserve (Fed) estimated that the true unemployment rate is much higher. The monetary authorities were held on Thursday with further monetary policy easing back, but their willingness to act in the crisis, confirmed. The Fed is already an ultra-loose line with interest rates in the extremely low range of 0 to 0.25 percent and billion-dollar bond purchases to support the economy.