U.S. Job growth slowed; About 4 million Americans are permanently unemployed

WAS SHINGTON (Reuters) – U.S. Employment growth slowed more than expected in September and more than 300,000 Americans lost their jobs permanently. President Donald Trump fought before the Nov November presidential election.

File photo: A view shows signs in Lord & Taylor’s windows, announcing store closures in Boston, Massachusetts, USA, Gust 5, 2020. Rear / Brian Snyder / File photo

The Labor Department’s employment report on Friday drew immediate attention to the urgent need for additional fiscal stimulus to help the economy recover from the recession caused by the Kovid-1p epidemic. Rental combinations for Trump slowed down problems, announcing overnight that he had tested positive for coronavirus.

Of the 22.2 million jobs lost during the epidemic, only half were restored. Former Vice President J. Biden, the Democratic nominee, has blamed the White House’s handling of the epidemic on economic unrest, which has killed more than 200,000 people and infected more than 7 million in the nation.

James Knightley, chief international economist at ING New York, said: “The job report adds to Trump’s woes. “Betting odds indicate a low chance that he will win re-election and the Democrats are much more likely to have a clean sweep.”

Nonfarm payrolls rose 1,661,000 jobs last month, the smallest gain since recovery recovery began in May, after an increase of ગ 1.4889 million in recovery gusts. The census in the state and local government education department added jobs to every sector with the exception of 216,000 positions due to temporary workers and job vacancies, as many school districts have turned to online education.

Employment in the leisure and hospitality sector increased by 318,000, accounting for about half of the benefits in nonfarm employment. Parolees are 10.7 million compared to their epidemic level. Economists polled by Reuters predicted that 850,000 jobs were created in September. When employment growth peaked in June, payrolls hit a record 4.78781 million jobs.

Unemployment fell to 9.9% in September, from 69.5% in August 5 to 55,000 people quitting their jobs. Despite employing people, were absent from jobs.

Without this mistake, the government estimated that the unemployment rate would have been around 8.3% in September. There were 3.8 million people who lost 5 345,000 from lost gust for a good job. More experienced long-term unemployed people are out of work for more than 27 weeks, numbering 781,000 to 2.4 million.

The recovery of the slow labor market is the strongest indication yet that the economy has shifted to lower gear in the fourth quarter. Monetary stimulus boosted growth over the summer. Third-quarter gross domestic product growth estimates peaked at an annual rate of 32%, which would make the April-June quarter raction reverse the contractionary pace of 31.4%.

The growth forecast for the fourth quarter has been reduced by about 2.5% at a pace of 10%.

Chris Rupki, chief economist at MUFG, said the virus is in the driver’s seat to control the pace of recovery and that the economy is currently slowing down until Congress and the White House can resolve their differences and provide additional stimulus. New York.

Shares fell on Wall Street. The dollar rose against the basket. US Treasury prices were low.

Women quit labor

The Democratic-controlled House of Representatives on Thursday approved a 2 2.2 trillion bailout package. Top Republicans in the Senate are likely to plan objections.

New coronavirus cases are on the rise with additional expectation in the fall, which could impose some restrictions on businesses in the services sector. Trump’s positive coronavirus test has increased political uncertainty that could lead to elections, and warns businesses to hire.

Walt Disney Co. said it would lay off about 28,000 employees in its theme parks department this week. American Airlines and United Airlines, U.S. No. The two largest carriers, said they are starting a furlough of more than 32,000 workers on Thursday, are missing government assistance.

Despite many long-standing unemployment, economists believe the unemployment rate will not see its pre-crisis level of 3.5% until mid-2024 and could take up to a year to recover lost jobs. This could further widen the gap in income inequality.

The COVID-19 crisis has adversely affected low-income populations and children who have left the labor force to care for children.

The labor force participation rate, or the proportion of job-seeking Americans who have a job or are looking for it, has dropped from .71. %% to .41. %% in Gust. The participation rate of women has come down from 1.51.1% to 55.5.6%. That changed a little for men.

Robert Rosner, an economist at Morgan Stanley in New York, said: “It may well be that more home school education is pushing down the growth rate on the labor force participation rate, which was significantly lower for women in September.”

Despite people working longer hours, the proxy for getting a household wage on a six-month year-on-year basis declined.

New York’s Ox Xford Economics chief U.S. Financial economist Kathy Bostgenik said consumers with lower financial support would like to see spending in the coming months.

Reporting by Lucia Mutic; Edited by Chizu Nomiyama, Andrea Ricci and Mark Potter