InvestorQ : What could be the implication of the US jobs data slowing once again?
Dilmini Mercia made post

What could be the implication of the US jobs data slowing once again?

Dawn Cherian answered.
6 months ago

US jobs data once again slowed more than anticipated in September 2020 as over 300,000 Americans lost their jobs permanently. This could be a body blow to the promises made by Trump ahead of the all-important elections in November.

The employment report has only underscored the urgent need for additional fiscal stimulus to aid the recovery from a recession. The $2.4 trillion fiscal stimulus has been talked about for some time now, but Trump has not given any commitment.

Out of the 22 million jobs lost during the pandemic, just about half the jobs have been recouped. Many experts interpret this pathetic jobs scenario as one factor that could lead to a clean sweep for the democrats.

However, every sector added jobs in the month of September with the exception of the government, which shed 216,000 jobs. Employment in the leisure and hospitality industry increased by 318,000 and it accounted for half of the gain in non-farm payrolls.

As of the end of Sep-20, there were 3.8 million people who had lost their jobs for good. That is up nearly 345,000 from August levels. People out of work for more than 27 weeks surged to 2.4 million. Slowing labour market is a sure sign of a slowdown.