November US Job Growth Below Expectations... Unemployment Rate Meets Expectations (Update)

November Employment Increase of 245,000... Falls Short of Expected 440,000
Unemployment Rate Exceeds Expectations at 6.7%

[Image source=AP Yonhap News]

[Asia Economy New York=Correspondent Baek Jong-min] The U.S. Department of Labor announced on the 4th that nonfarm payrolls increased by 245,000 in November, with the unemployment rate recorded at 6.7%.

The November employment growth fell short of the market expectation of 440,000 compiled by Dow Jones. It also showed a clear decline compared to the 610,000 jobs added in October. However, the number of jobs has increased for seven consecutive months since the mass unemployment caused by the COVID-19 pandemic in March.

The increase in employment was driven by growth in transportation and warehousing sectors due to the year-end shopping season effect.

The unemployment rate dropped by 0.2 percentage points from 6.9% in October. The unemployment rate was better than the expected 6.8%.

CNBC interpreted that although the job recovery trend clearly weakened as the COVID-19 situation worsened, the unemployment rate was positively reflected due to the labor force participation rate falling to 61.5%.

The Wall Street Journal stated that only half of the 22 million jobs lost since the COVID-19 crisis have been recovered, noting that while job growth is weakening, the labor market recovery has been stronger than most economists expected.

The Journal also introduced expert opinions that broad distribution of COVID-19 vaccines will accelerate economic and employment recovery.

David Burson, Chief Economist at Nationwide Mutual Insurance, predicted, "If infection rates decrease due to vaccination, business activity and employment will increase rapidly."