The United States economy added 199,000 jobs in November and the unemployment rate fell to 3.7%. This is the fifth time in six months that the unemployment rate has dropped, hinting at a strong recovery from the economic shock caused by the global pandemic.
The November jobs report also revealed that consumer confidence is slowly increasing. The big gains in employment were primarily in the leisure and hospitality industry, which added 331,000 jobs last month. The education and healthcare sectors also saw substantial gains with 77,000 and 58,000 jobs added.
The sectors hardest hit by the pandemic are still feeling the strain. The retail sector lost 89,000 jobs in November while the manufacturing industry only managed to add 12,000. Industry experts worry whether the recovering sectors are sustainable in the long run.
Nevertheless, the continuous drop in the unemployment rate and increase in job numbers is welcomed news as more Americans return to work. The government has taken extraordinary steps to help the economy with additional stimulus payments and extended unemployment benefits.
President-elect Joe Biden has also promised more support in the future. He has stated he wants to extend stimulus payments to the most-impacted families and pass major aid to states, local governments, and small businesses. Since then, markets have reacted positively creating a sense of optimism among investors.
The US Department of Labor believes the December jobs report will show similar positive results. The department estimates that at least 320,000 jobs will be added in the final month of 2020.
Overall, there is growing optimism about the health of the US economy. But the full recovery from the global pandemic is still unclear and will depend largely on government support. The December jobs report will be an important indicator of the direction the economy will be taking in 2021.
