US unemployment rate drops to 6.9 per cent as employers add a solid 638,000 jobs

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US unemployment rate drops to 6.9 per cent as employers add a solid 638,000 jobs

The US labour market had witnessed a torrential high-tide in October with American employers adding a seasonally adjusted 638,000 jobs, downsizing US unemployment rate to 6.9 per cent. Nevertheless, a flabbergasting burst in US labour market strength last month that seemed to have bolted out of the blue amid a second wave of pandemic in the United States, came forth at a critical time while the Democratic Challenger Joe Biden appeared to be just a notch shy of taking over the White House from Republican President Donald Trump.

Though, sceptics were quoted saying following Friday’s US Labour Department data that the pace of hiring had not been sufficient to insulate a slowing US economy which had been vying to vent out a way from a pandemic-propelled recession.

US unemployment drops to 6.9%

Nonetheless, there had been a full-fledged positive energy to garner from US Labour Department’s Friday data, as American employers had added 638,000 jobs last month that followed a 672,000 job gains in September, suggesting a tentative recovery for an ailing US labour market.

Aside from that, although in plain view, October gains in US payrolls might appear to be weaker than September and August while the US economy had added a record 1.5 million jobs, but analysts had contemplated last month’s gain as a beacon of hope for the US economy, since it had to grapple with a loss of roughly 150,000 temporary Census jobs and private payrolls had added a healthy 906,000 jobs last month.

In tandem, according to the US Labour Department data released earlier on the day, there had been a growing inequality in job losses as low-income workers, people of colour alongside working mothers have still been bearing the heaviest brunt.

Meanwhile, referring to an uneven recovery in US Labour market which had been struggling to brace for a re-imposition of pandemic-led forced business closures in a swathe of US states, an economist at Indeed, Nick Bunker, said following release of US Labour Department data, “It was a pleasant surprise to see that the pace of the recovery hasn’t slowed down, but, we all need to keep in mind the huge hole that we’re in, in terms of jobs and unemployment”.