Private payrolls soar in January, the best monthly gain in nearly 5 years
Payrolls rose by 291,000 in the month of January 2020 making it the best month for jobs since May 2015 and exceeding predictions. Unemployment is at its lowest in more than 50 years right now. Also, the new jobs are spread out over many types of industries like leisure and hospitality, education, health services, professional and business services, construction, and manufacturing. One of the reasons why this might be happening is the good weather this winter, so more people are out looking for jobs while companies like construction and transportation are hiring more. Do you think there is a risk for unemployment being this low, or do you think there is a possibility for unemployment to lower even more in the upcoming months?
https://www.cnbc.com/2020/02/05/adp-moodys-private-payrolls-january-2019.html
https://www.cnbc.com/2020/02/05/adp-moodys-private-payrolls-january-2019.html
2 comments:
I think that since unemployment is at its historically lowest point, there is a little uncertainty as to how this will impact the labor market and further rates. If unemployment falls even further in the future, it would be really amazing for the economy and growth, however It could potentially result in inflationary pressure building up since the consumption aspect of aggregate demand would increase overtime. That being said, I think it really depends industry wise where those jobs are being created. Certain industries require more people and not a lot of skills, and if that is the reason behind lower unemployment then it doesn't add to human capital as much. Additionally, certain locations were jobs are booming are now facing higher housing prices, and this can be expected to continue to rise across the country if unemployment declines further.
I believe another great statistic from just this last month is that the unemployment rate had gone up ever so slightly from the month prior, but the overall labor force increased. Due to either more new potential workers coming to America, or people previously not looking for jobs that now are, this is a great signal for the future. If this trend continues, more people will continue to feel comfortable searching for new jobs again and hopefully make our economy even more efficient and stronger.
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