The job reports in September fell short of Wall Street expectation, which raised concerns about the economic recovery from COVID. In September there was an increase of 661,000 non-farm payrolls. While in normal times this would have been considered to be very good it did not meet Wall Streets expectation of 800,000. Along with this unemployment rates fell to 7.9%, however, a large part of this was due to people leaving the labor force. Nick Bunker, an economic research director at Indeed, says "This report is an illusion of progress at a time when we needed accelerating gains in the labor market."
3 comments:
I agree in that the reported unemployment rate is an illusion because it does not tell the whole story. I definitely think that the economies recovery may be fading mainly thanks to many people that where receiving unemployment benefits being cut off, which is forcing them to consume less overall impacting GDP.
Those results are in no doubt an illusion as labor market growth should be much greater. Quarter four numbers will have more of a story to tell when businesses throw in the towel and job cuts occur. Businesses will start to struggle more than they already are and closing will occur if more fiscal stimulus isn’t provided. The article said, “about one-third of small- and mid-size businesses indicated to PNC that they would close in a year or less absent a change in conditions, said Gus Faucher, the bank’s chief economist.”
Do you guys think this illusion could still help the economy by increasing consumer confidence or do you all think that theres no benefit from these numbers?
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