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Unemployment Rate Down to 6.7%

The U.S. economy added back 245,000 jobs in November -- the smallest gain since the pandemic began. Companies have slowed the pace at which they are bringing employees back to work as coronavirus cases have been climbing sharply in recent weeks. The unemployment rate dropped from 6.9% in September to 6.7%. Notable job gains occurred over the month in transportation and warehousing, professional and business services, and healthcare. Employment declined in government and retail trade. In November, 21.8% of employed persons teleworked because of the coronavirus pandemic, up from 21.2% in October; and nonfarm employment during the month was below its February level by 9.8 million, or 6.5%. The Labor Department also recently reported that another 712,000 people filed initial unemployment claims, and the total of continuous claims was 6.2 million, down from 8.2 million a month ago. Those figures indicate that the employment environment, while improving, is still under stress. We expect the unemployment rate will remain high -- and thus the Federal Reserve will keep interest rates low -- into 2021 as the U.S. economy slowly recovers. ...  21.8% of employed persons teleworked because of the coronavirus pandemic, up from 21.2% in October; and nonfarm employment during the month was below its February level by 9.8 million, or 6.5%. The Labor Department also recently reported that another 712,000 people filed initial unemployment claims, and the total of continuous claims was 6.2 million, down from 8.2 million a month ago. Those figures indicate that the employment environment, while improving, is still under stress. We expect the unemployment rate will remain high -- and thus the Federal Reserve will keep interest rates low -- into 2021 as the U.S. economy slowly recovers.   more

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