Last Friday’s job report highlighted that the labor market recovery has slowed. The U.S. added just 245,000 jobs in November. This increase is far below the rebounds in May and June when business payrolls increased by 2.7 million and 4.8 million jobs. In October, we added 610,000 jobs.

The U.S. remains 10 million jobs short of its pre-pandemic level. Robert Frick, an economist at Navy Federal Credit Union, wrote, “We are far below a good pace to return the almost 10 million jobless Americans back to work.”

Economists are worried about the following:

  • Slowing job growth
  • A shrinking labor force – the labor force participation rate fell to 61.5%, the lowest level since the 1970s.
  • Rising long-term unemployment
  • More than 1 out of 10 Black workers are unemployed.

Members of both political parties have focused on the lackluster jobs report to justify passing a stimulus bill. President-elect Joe Biden said that Congress should pass a package as soon as possible.

Larry Kudlow, director of the White House National Economics Council, said that Congress should approve a plan that adds a federal supplement to benefits that states pay to unemployment workers.

The unemployment rate has dropped to 6.7%. However, the job picture is bleaker than these numbers suggest because many people have stopped looking for work. Economists worry that a greater share of job losses has become permanent. The share of workers unemployed for more than six months is fast approaching its historical peak. In November, the number of long-term unemployed workers accounted for 37% of all unemployed workers. Workers experiencing long-term unemployment have a tougher time finding work.

The plunging hiring numbers indicate that the country’s recovery is hitting a wall because surging coronavirus cases and cooling weather have dampened economic activity.

Some job sectors are strong. U.S. households were increasingly buying retail items online, including clothes, gifts, and groceries. Tech workers are becoming more critical to the success of most industries. Cyber security engineers, web developers, and systems engineers enjoyed double-digit growth. Online buying has stimulated a hiring binge in logistics industries. Transportation and warehousing industries – the ones that package, ship, and deliver goods to consumers – have enjoyed significant growth. Workers who deliver goods have expanded by 22%.

It has been more than six months since the coronavirus outbreak sent shockwaves through the U.S. economy. The coronavirus pandemic has led to widespread changes in our personal and professional lives with students shifting to remote learning, office workers changing to work from home and millions of Americans enduring long-term unemployment.

A number of Democrats and Republicans support a $908 billion compromise stimulus plan. While the size of this package is smaller than previous compromise packages, it is better than nothing. This bill includes a $300 weekly unemployment supplement. The bill will include $300 billion in new aid to small business, $180 billion to unemployed workers, and $160 billion to state and local governments.

While the labor market has recovered somewhat and the stock market has performed well, many Americans continue to face deep financial hardships.

A quarter of U.S. adults say that they or someone in their household has been laid off because of the coronavirus outbreak; 32% say they or someone else in their household has taken a pay cut. Lower-income adults have been most affected by coronavirus-related job loss or pay cuts.

Nearly 25% of adults have trouble paying their bills. One-third have dipped into savings or retirement accounts to make ends meet. One-sixth have borrowed money from friends or family or gotten food from a food bank.

Sen. John Barrasso, R-Wyoming, summed up the need for a stimulus: “The overall economy is recovering, but there are still individuals struggling. That is why we need to do another program.”

Originally published in the Sarasota Herald-Tribune