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."