The percentage of the US workforce without gainful employment, actively seeking work and claiming benefits remained unchanged at 5.8% in November. However, the number of jobs added to the economy actually surpassed predictions of 225000, coming in at an impressive 321000 according to figures from the Labor Department. The reason that this level of job creation didn’t dint the unemployment statistics is that young people are entering the job market for the first time, but also some jobs are still being lost and others are more optimistic of finding work and have (re-)registered as unemployed. November’s data is the tenth consecutive month that has seen the US economy create more than 200000 positions and is the best job creation run since the mid-1990s.
Additionally, the Labor Department revised employment data for September and October upwards to reflect creation of a further 44000 jobs on firmer data.
‘Tis the season of temporary employment, creating jobs to cater for additional demand over the festive season. UPS, a delivery firm, anticipates that it will hire 95000 workers whilst FedEx expects to recruit an additional 50000 staff – both firms hiring 10000 extra workers than at this time last year, indicating the gradual improvement of demand as the recovery continues. The National Retail Federation expects that seasonal hiring will be up by 4% this year involving some 800000 people.
Despite the improved employment situation over the year which has seen unemployment fall from 6.6% to 5.8%, salaries have yet to rise significantly which equates to subdued consumer spending. Domestic consumption accounts for about 70% of US output.