Jan 3, 2020

Growing divide between the two Americas

Illustration: Aïda Amer/Axios

Life in the U.S. is increasingly divided into two realities — one in which things have almost never been better and another in which it's hard to imagine them being worse.

Driving the news: Bankruptcies led more companies to announce job cuts last year than at any time in more than a decade, WSJ's Aisha Al-Muslim reports (subscription), citing data from outplacement firm Challenger, Gray and Christmas.

Details: Despite the latest jobs report from the Labor Department showing the unemployment rate near a 50-year low, 2019 saw the third highest number of total layoffs in the decade, with nearly 600,000 people losing their jobs, a 10% increase over 2018.

  • There were more job cuts related to bankruptcy in 2019 than in both 2008 and 2009, during the Great Recession.
  • 2019 was the year the oft-invoked healthy American consumer carried the economy, but U.S. retailers announced 9,302 store closings, a 59% increase from 2018 and the highest number since Coresight Research began tracking the data in 2012.

The intrigue: Overall, job gains and growth have been confined to certain areas and industries.

  • While the U.S. added an average of 180,000 jobs a month in 2019, the retail, mining and utilities sectors all saw net job losses for the year, as of November, which is the last month with available data.
  • The lion's share of new jobs has been in health care, leisure and hospitality, and professional and business services.

Meanwhile, a new report from the Philadelphia Fed shows nine states are expected to see their economies shrink this year, even as the central bank and most economists expect the U.S. as a whole will avoid recession.

  • The number of states projected to see contracting economies is the highest since July 2009.

What we're watching: The U.S. jobs report will be released Friday, Jan. 10, not today.

Go deeper: An unsettling future for millions of American jobs

Go deeper

U.S. economy adds 145,000 jobs in final report of 2019

Data: Bureau of Labor Statistics; Chart: Axios Visuals

The U.S. economy added 145,000 jobs in December, the government said on Friday, below economists’ expectations of 160,000. The unemployment rate held at 3.5% — a 50-year low — while wages grew 2.9% from a year earlier, the smallest gain since July 2018.

Why it matters: The U.S. job market held up in the final month of 2019, but heads into the election year with a slowing pace of job creation and wage growth.

Go deeperArrowJan 10, 2020

Unemployment fell to 50-year low in 2019 but wages stagnated

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

Friday's jobs report missed expectations, but still delivered solid numbers, showing the U.S. economy added well over 100,000 jobs and the unemployment rate remained near a 50-year low.

The big picture: BLS reported that the number of people who were employed part time but would rather be full-time employees declined by 507,000 over the year.

A surge in the "jobs of the future"

Data: Cognizant; Chart: Axios Visuals

The last quarter of 2019 saw a big jump in demand for a bundle of jobs that could dominate the future, per an index tracked by the IT services firm Cognizant.

Why it matters: "The notion that there's gonna be a jobs apocalypse has been with us for the last decade, but the data shows that's not coming to pass," says Rob Brown, VP of Cognizant's Center for the Future of Work.

Go deeperArrowJan 25, 2020