Nov 9, 2020 - Economy & Business

The jobs recovery remains far from complete

Data: U.S. Bureau of Labor Statistics; Chart: Axios Visuals
Data: U.S. Bureau of Labor Statistics; Chart: Axios Visuals

The U.S. economy added more jobs than expected last month — 638,000 — marking the sixth month of consecutive declines in the unemployment rate, but there are still 10 million fewer jobs filled than there were in February.

What they're saying: "The combination of elevated unemployment and part-time employment and low participation all point to significant slack in the labor market," economists at Jefferies write in a note to clients.

  • Additionally, they note, "permanent layoffs now exceed temporary layoffs for the first time since the start of the pandemic, which points to slower job growth ahead."
  • The Fed noted in its policy statement Thursday, “Economic activity and employment have continued to recover but remain well below their levels at the beginning of the year.”

Keep it 💯: "Payroll growth is nothing like strong enough to recover the lost ground, despite the October beat," Pantheon Macroeconomics chief economist Ian Shepherdson writes. 

  • "And the omens for November are grim, as rampaging Covid scares people into staying home."
  • "The chance of a lame-duck stimulus bill is rising, but it won't be big enough; more will be needed in Q1."
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