In latest vindication of a vivid demonstration of a struggling US labour market what analysts said had stalled later last year, US Labour Department’s JOLTS (Job Openings and Labour Turnover Survey) report released earlier on Tuesday had laid out a widespread exacerbation in layoffs later last year, while US job openings had taken a hefty header in November.
On top of that, according to US Labour Department’s JOLTS survey data, one of the most closely observed indicators of labour demand, US job openings fell by 105,000 to a seasonally adjusted 6.527 million as of November 30, 2020.
Nonetheless, although layoffs had dropped from a record high of 7.012 million earlier this month, the staggering figures still remained more than double of levels witnessed during the Great Financial Depression of 2007-09.
Aside from that, as a rancorous wave of soaring pandemic cases had been pouring fresh scorns over an already scuffling US labour market while debasing businesses’ sentiment to rehire, layoffs spiked by 295,000 to a nearly 2.0 million in November, while a lion’s share of job losses was seen in the western part of the United States, lifting the layoffs rate to 1.4 per cent in November from a 1.2 per cent registered a month earlier.
Delayed pandemic stimulus to be blamed for a hike in layoffs
Meanwhile, as the day’s JOLTS data came against the backdrop of a baleful US non-farm payroll report that showed the US employers had shrugged off workers for the first time in eight months in December, several analysts held a delay in Government stimulus accountable for the recent rise in layoffs.
In factuality, after a month-long of rattling battle in the US Congress, Senate had agreed to a $900 billion in additional pandemic stimulus package in late December, while the departing US President Donald Trump had initially declined to sign off the bill to turn it into a law, instigating further delays in the rollout of a much-required pandemic stimulus package.