US labour market loses cogency as non-farm payrolls data disappoint

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US labour market loses cogency as non-farm payrolls data disappoint

On Friday, the US labour Department said in a statement that US non-farm payrolls increased by 245,000 jobs last month following a rise of 610,000 jobs in October, marking up the tiniest gain since US job recovery had begun to take shape back in May this year as a pandemic resurgence at large coupled with a steep lack in Government initiatives to rollout a fiscal stimulus had been raising an alarming bell over the US economy’s recovery from the pandemic-propelled downturns.

Aside from that, US Labour Department’s non-farm payrolls data for November had also added that the drastic slowdown in employment last month had marked up the fifth straight month of decline in job growths, suggesting a menacing outlook that could ward off the gains achieved thus far after the US economy had succumbed into a recession in February this year, said analysts.

US labour market continues to lose steam after bleaker employment data

On top of that, other employment data released by the US Labour Department earlier in the day had revealed that more than 3.9 million Americans had been jobless for more than six months with many appeared to have given up amid a sharp uptick in pandemic cases alongside a sheer reluctancy among US businesses to resume hiring.

Besides, followed by Friday’s dismal job data, the US President-elect Joe Biden who is expected to take over the Oval Office by January 20, had called the report “grim” and urged the departing US President Donald Trump to proffer additional fiscal relief bills adding “Americans need help and they need it now”.

Notably, in the latest scrappiest flashpoint in a perilous plunge in US employment data, the US economy had recovered only 12.4 million jobs thus far of a stabbing 22.2 million jobs lost during March and April.

With non-farm payrolls slowing sharply amid a broad-based weakness in service sectors activities that tottered to a six-month low in November, analysts were warning of a much bleaker than anticipated winter despite a vaccine one the way.