WASHINGTON (AP) – Despite concerns about another recession, U.S. businesses continue to hire at a steady pace in October, but there are signs they remain cautious about the future of the economy. The epidemic got worse.
The Labor Department said Friday that employers created 638,000 more jobs and the unemployment rate dropped full-point to 6.9%, extending recovery much faster than economists expected in the spring.
But the recruitment rate is not strong enough to quickly attract millions of Americans, who have been laid off by the pandemic recession.
Job growth was little changed from September 672,000 and less than 1.5 million in the first half of August. However, the increase was stronger than it appeared: It was held back by the loss of around 150,000 jobs. work temporarily in the Census. Excluding government at all levels, private businesses have added 906,000 healthy jobs. The rental has been maintained at that level for three months.
Overall, the latest jobs report shows that for now, the expected recovery is still intact and the economy is continuing to adapt to the pandemic.
“It was a pleasant surprise to see that the recovery rate hasn’t slowed down,” said Nick Bunker, an economist at the job search website. “But we all need to keep in mind the big hole we’re facing, in terms of employment and the unemployment rate.”
Recruitment increased in the retail sector, including online retail, where many Americans turned around during an outbreak. The warehouse and courier services have both added monthly jobs since the pandemic, including last month.
But in a sign of uncertainty pervading the economy as the virus surged, companies also added more than 100,000 temporary workers. This shows that they are seeing more demand from the client but are not sure how long it will last and are reluctant to offer a permanent job offer. The length of the average workweek has also increased, evidence suggests that employers are pushing their current employees to work harder instead of taking on new workers.
Federal Reserve Chairman Jerome Powell and Wall Street economists urged Congress approving additional government aid to support families and businesses, especially as a pandemic raging and colder weather threatens the recent hiring increase between restaurants and bars, which may serving customers outdoors.
But the outlook for more stimulus was shaken by the election, it seems to lead to victory for former Vice President Joe Biden, a Democrat, while also able to preserve the majority Republicans in the Senate. That means any additional aid will be delayed until at least next year.
The job market and the economy at large are still under increasing pressure from the growing pandemic. On Thursday, the country broke another record for the average seven-day number of new cases, reaching nearly 90,000. Daily new cases are also trending up to 100,000 again, with skyrocketing numbers reported across the country, including nearly 25,000 in Texas, Illinois and Florida.
The country still has 10.1 million jobs left than it did before the virus outbreak broke out in March. At the current hiring rate, it will take February 2022 to get all those jobs back. However, that will be faster than the Great Recession of 2008-2009, when it took more than five years to recover lost jobs.
The gradual recovery of the job market has affected Americans in uneven ways and has increased inequality. Lower-paid workers in industries such as restaurants, hotels and healthcare have seen their jobs and incomes recover much more slowly than white-collar workers mainly working in home. Many of them have also benefited from increases in home equity and from the Federal Reserve’s ultra-low interest rate policies, which have spurred momentum in the stock market.
Women are more likely to leave the workforce than men since the beginning of the pandemic, especially since school started, with many schools only operating online. That has forced some working mothers to quit their jobs.
And the unemployment rate for black workers, at 10.8%, fell sharply in October but was still much higher than the white one, down to 6%. The Hispanic unemployment rate fell from 10.3% to 8.8%.
Several companies have benefited from the way the pandemic is reshaping the way Americans work and live. With a fifth of the workers working from home, spending on services like cleaning, painting and remodeling has skyrocketed, government reports show.
That keeps the Premium Service Brands busy. Charlottesville, Virginia, owns seven family service businesses, including Maid Right, 360 Painting, and Handyman Pro.
Paul Flick, Founder and CEO, said: “In terms of recruiting, we are operating very effectively. “People are investing more money where they are spending their time.”
Flick says his company’s franchises have increased hiring by about 25 percent since the pandemic. Some of their new employees used to be cleaning workers at hotels or had lost their jobs in other service businesses.
However, other companies are still struggling. JMBrennan Inc., a third-generation mechanical engineering firm in Milwaukee, has had to lay off a number of employees since March. The company installed and repaired plumbing, heating and air conditioning systems, but demand declined as office and school buildings remained vacant.
And with the rise of the pandemic, very few businesses are thinking about scaling up.
“Anyone need a brand new office tower?” Brennan asked. “Anyone need a new hospital?” His company completed work in June on the new 25-story BMO Bank Tower in downtown Milwaukee that he estimates could have 35 people in it. Workers are unlikely to return if the pandemic continues, he said.
“We’re not shutting down the economy, but the reality is that COVID is still very much uncertain,” he said. “You don’t need to expand if no one is in your building.”
The economy, which rebounded sharply in the 7-9 quarter as businesses reopened after a virus-related shutdown, is expanding more slowly.. Many businesses can face difficulty when the weather gets colder. Consumers can also return to shopping, traveling and other activities to avoid viral infections.
However, some parts of the economy are recovering stably. Manufacturing output is still rising again, with Americans increasing purchases of cars, homes, and home-related goods like equipment and furniture. Home sales also increased as the Fed pushed mortgage rates to record lows.