Employment in the US in December 2021 declined sharply compared with what experts estimate, but unemployment fell by 4 percent for the first time during the epidemic – leading to a much longer epidemic.
While data was scarce, this was also the largest in the job market in the United States. But not all the news is bad.
The world’s largest economy caused 199,000 job losses in December, the US Department of Labor said in a statement Friday. This is less than half the expectations of most experts.
Instead, unemployment in the country dropped by 0.3 percent to 3.9 percent, leading to a 3.5 percent increase in the outbreak of the epidemic seen in February 2020.
Burial within the unemployment rate is a sign of growing racial inequality. The unemployment rate dropped by 0.5 percent last month to 3.2 percent, while the unemployment rate in Africa America rose by 0.6 percent to 7.1 percent.
Most of the December activity report was collected within a month – before Omicron’s disease spread to the US. Some economists warn that the new reforms could hit the wind in the labor market in January, due to a plane crash and an increasing number of sick workers.
Illness due to illness is exacerbating the decline in the number of former workers in the US – which is believed to be hampering job creation.
“The steady gains of 199,000 in unpaid wages and the high number of workers show that the shortage of workers is a barrier to job growth, even before the onset of Omicron’s disease, which could drop thousands of people in January,” said Michael Pearce. US economist at Capital Economics.
Population of 4.5 million Americans deliberately quit their jobs in November, as an indication of how confident employees are about their job prospects. The job opening on the last day of November was also very close.
In order to attract the unemployed, businesses have been raising wages and increasing profits.
This continued in December, when hourly wages for non-paid self-employed increased by 4.7 percent from the previous year.
The number of employees – which counts for those who are active or actively seeking – has not changed in December at 61.9 percent. This is 1.5 percent lower than before the epidemic.
The unemployment rate dropped by 483,000 last month to 6.3 million.
For the entire year 2021, job growth was 537,000 per month in the US. This leaves the economy 3.6 million jobs embarrassed to resume all 22 million jobs lost in the first months of the epidemic in 2020.
While these shortcomings have not slowed economic growth or employment since then, these experiences show that the epidemic has changed the US labor market in ways that economists are still struggling to cope.
There are a number of factors that are believed to be contributing to the decline in the workforce in the US, ranging from fear of taking COVID-19, to childcare crisis, early maternity leave, and workers choosing to start their own businesses instead of working for someone else.
To the delight of the staff, they have not been in this strong bond for many years.
But despite last month’s pay, workers still have reason to do so, due to rising commodity prices. The Federal Reserve wants to test for lower prices, Personal Consumption Expenditures, rose by 5.7 percent in November compared to the previous year – the worst climb in almost 40 years.
Towards the end of last year, the Fed had prioritized interest-bearing rates in the past to provide a fertile ground for Americans to return to work. But with inflation rising sharply, the Fed signed in December a hawkish move in monetary policy to curb rising inflation.