On Wednesday, US ADP National Employment report had mirrored an utterly jejune outlook for an ailing US labour market, while American private employers had shrugged off workers for the first time in more than eight months in December as a persistent spike in pandemic cases across the worlds’ No.
1 economy had led to fresh wave of business restrictions, setting off a slanderous tone what analysts said could succumb the US economy further into a brutal wintry chill. Nonetheless, amid competing narratives on the course of a US economy, latest US job data came forth a day after an ISM (Institute of Supply Management) survey data had revealed that the US manufacturing activity had surged to a nearly two-and-a-half years peak in December, while an IHS Markit survey report on US factory activity released earlier this week had added that the US factory activity had accelerated by its steepest pace in more than six years last month, suggesting that a mass-scale lay off might take place in services sector last month.
US private payroll posts first decline in eight months
In point of fact, the US private payroll report released earlier in the day had revealed a heightening up of lay-offs across all of the sectors, while services sector appeared to have borne the heaviest brunt as a pandemic outbreak at large in context of an unprecedented delay in the pandemic vaccine rollout had forced millions of Americans to lock themselves at home.
Nonetheless, an unexpected spike in US manufacturing activities last month that appeared to have bolted out of the blue, had been acting as a shimmering ray of hope for a US economy alongside its struggling labour market which had entered into a recession in February last year.
Meanwhile, as Wednesday’s ADP private payroll data had revealed a decline of 123,000 jobs last month that followed an increase of 304,000 jobs in November, missing an analysts’ estimate of a rise in private jobs by 88,000, addressing to pandemic-led business restrictions and associated lay-offs which would likely to be short-lived, a Chief Economist at MUFG in New York, Chris Rupkey said following the announcement, “America’s great jobs machine ran into a wall of rising coronavirus cases and state lockdowns which puts the entire economic recovery from recession at risk.
The heart of every recession is job losses and right now the decline in jobs at year end is hinting that the dark days of the labor market last spring have returned. ”