U.S. Participation Rate Edges Up in Sign of Job-Market Healing
(Bloomberg) -- A closely watched measure of labor supply in the U.S. improved last month, underscoring some progress in the labor-market recovery but also showing the persistence of hiring challenges for employers in the months ahead.
The share of Americans who were either employed or looking for work last month edged up to 61.8%, the highest since March 2020 but still well below pre-pandemic levels, according to data from the Bureau of Labor Statistics Friday. The participation rate among those ages 25 to 54 was little changed at 81.8%. For those 55 and older, it remained unchanged after declining in the prior month.
Among demographic groups, the picture was mixed. Participation among Black workers declined, driven by the lowest rate among Black women 20 years and older since March. The rate among White and Asian workers was little changed. Meantime, participation among Hispanic workers jumped to 66.3%, the highest since March 2020.
Read more: U.S. Payroll Growth Slowed in November While Jobless Rate Fell
For months, depressed participation has haunted employers desperate to meet demand. Across industries, businesses have raised wages to attract workers and fill a near-record number of positions. Even so, factors ranging from early retirements to care giving to the ongoing pandemic have left the U.S. with a limited supply of workers.
Average hourly earnings rose 0.3% in November and were up 4.8% from a year earlier, both slightly below the median estimates in a Bloomberg survey of economists.
Read more: U.S. Worker Shortage Not Likely to Ease Soon, Survey Shows
Looking ahead, the tight labor pool may lead to additional wage increases to lure employees back, a trend that risks fueling consumer prices even higher. Federal Reserve officials, including Chair Jerome Powell, have already suggested winding down the central bank's asset-purchasing program even faster amid widespread pressure to address the rapid pace of inflation.
“A sustained increase in the participation rate, which still has recovered only about half the Covid-induced drop, is essential if wage growth is to revert to a pace consistent with the Fed's medium-term inflation target,” Ian Shepherdson, chief economist at Pantheon Macroeconomics, said in a note.
The report also indicated more structural shifts in the workforce. The number Americans unemployed for 27 weeks or longer has improved in recent months but is still 1.1 million higher than pre-pandemic levels. The number of people not in the labor force but who want a job remains about 850,000 higher than in February 2020.
©2021 Bloomberg L.P.
-
Blue Wave Will Derail the AI Trade but Won't Dismantle the AI Era | Unhedged Position
The Democrats' sweep of the US Congress will see politics collide with economic forces both over the long and short term.
-
It's Time To Take The GST Council's Bet On Trust Global
Payment records can prove India's services exports, and clear, proportionate rules can bring foreign digital sellers into the tax net.
-
Opinion | India at 38: From Innovation Overperformer to Innovation Powerhouse
India now has 453 VC-backed deep science startups, 18 of them late-stage, after 117 percent growth since 2020. Laurus Labs, at USD 9.3 billion, is the most valuable deep science company in any middle-income economy outside China.
-
Navigating Energy Crossroads: S Jaishankar's Call For Diversified Supply Chains At G20 Ministerial Meeting
As geopolitical fault lines continue to test maritime trade routes and commodity flows, Jaishankar's message remains pertinent: true economic resilience requires open markets, protected transit lines, and a genuine commitment to multilateral cooperation rather than coercion.
-
Indians Are Travelling, But Not Every Journey Is A Holiday | The Week In Whys
Pilgrims, patients and working women are the real travellers, and the system hasn't quite caught up with them.
-
Getting To Work Costs Women More | The Reason Why
It is not just about women paying more than men. It is about women paying much more in cities than in villages.
-
AI Bias In Investing Cannot Be Eliminated, But It Can Be Governed
Framing is a particularly important example as identical financial information presented in terms of gains rather than losses can lead an LLM to reach a different assessment.
-
Joining The Dots | Dark Skies, Steady Diya: Why Hope Holds This Diwali
With war, a weak rupee and foreign outflows weighing on sentiment, policymakers at the NDTV World Summit and market veterans at NDTV Profit Ignite: Diwali Edition offered the same advice: stay invested and filter out the noise.
-
The Curious Case of Equitas Small Finance Bank And A CEO Who Quit For Stock
PN Vasudevan believes persistent investor concerns over a perceived conflict of interest had become a governance overhang on Equitas Small Finance Bank's stock, even as the lender improved profitability and asset quality.
