US Labour Market Weakening as November Hiring Falls to Slowest Pace Since July

As coronavirus cases continue to soar across the US with daily cases exceeding the 100,000 mark for 27 consecutive days, many states have been reverting back to some form of lockdown restrictions to curb the outbreak’s deadly spread. This in turn is beginning to slow down the progression of America’s economic recovery, as November private payrolls dropped to the slowest pace since July.

According to monthly payrolls report published by the ADP Research Institute, companies only hired 307,000 new workers in November, which is significantly below the 475,000 projected by economists surveyed by Dow Jones. The November payrolls data is somewhat of a serious drop from the revised 404,000 recorded in October, and is the smallest gain since July’s 216,000 increase.

A large portion of the hiring (139,000 jobs to be exact) came from companies that have anywhere between 50 to 499 workers, while smaller companies increased overall private payrolls by 110,000. However, the slowest hiring sprees were witnessed among large companies, which only added 58,000 new workers to their payroll. Moreover, service industries were responsible with providing the largest increase in jobs with 276,000, followed by leisure and hospitality, despite increasing restrictions on bars and restaurants, which added 95,000 positions.

In the meantime, the Department of Labour is anticipated to reveal that the US economy added 440,000 jobs in November, which is a moderate decline from the 638,000 new positions that were reported in October. Lastly, Dow Jones projects that the unemployment rate will drop from the current 6.9% to 6.7% in November.


Information for this briefing was found via the ADP Research Institute and the DOL. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.

Video Articles

2026 Could Be Gold’s Biggest Year Yet!? | Ryan King – Equinox Gold

Gold Is Screaming Higher While Currencies Burn | Simon Ridgway – Rackla Metals

We Have the Highest-Grade Antimony Deposit in North America!? | Jim Atkinson -Antimony Resources

Recommended

Canadian Copper Secures $8 Million Lead Order From Ocean Partners As Part Of Larger Funding Round

Northern Superior Expands Philibert With 350 Metre Step Out Testing 1.10 g/t Gold Over 25.5 Metres

Related News

Canadian Federal Government Extends CERB Payments For 8 More Weeks

As mentioned earlier, the Canadian federal government has been pushing a plan to extend CERB...

Wednesday, June 17, 2020, 03:49:00 PM

Larry Summers Delivers Austerity Message While Reclining in Tropical Paradise

Former Treasury Secretary Larry Summers recently applauded the Federal Reserve for their stance on unemployment...

Friday, January 13, 2023, 02:22:00 PM

Atlanta Fed’s Econometric Model Predicting 34.9% Drop in GDP Level For Q2 2020

The Federal Reserve Bank of Atlanta runs an econometric model called GDPNow, which produces a...

Tuesday, May 12, 2020, 03:49:00 PM

Nearly 6.7 Million American Households at Risk of Eviction Once Unemployment Benefits, Eviction Moratoriums Expire

Despite the continued increase in coronavirus cases across the US and many Americans still unemployed,...

Friday, July 3, 2020, 07:14:00 PM

US Initial Jobless Claims on the Rise Again as Soaring Covid Cases Crush Labour Market

The US labour market recovery appears to be stalling amid a surge in coronavirus cases...

Wednesday, November 25, 2020, 02:30:00 PM