The Bureau of Labor Statistics in the United States of America on Friday released data regarding unemployment and jobs in the country for the month of October 2022.
Data suggests that the unemployment rate in the North American country spiked to 3.7 percent in the country showing signs of the continuing crisis in the labor market . Despite an increase in the unemployment rate, the labor market also posted an increase in the number of non-farm jobs.
During October 2022, non-farm jobs in the Economy increased by nearly 261000 to a total of 6.1 million. While the professional and technical services sector added 43000 jobs during the month, the manufacturing sector added 32000 jobs. Monthly job growth in professional and technical services has, however, averaged 41,000 in 2022, lower than 53,000 per month in 2021.
The majority of the job addition in the manufacturing sector was in the durable goods industry. The industry added 23000 jobs to the economy.
It is notable that the information technology sector also witnessed an increase in the total number of jobs posted amidst large-scale layoffs by tech companies. High Inflation and dried-up revenue streams are forcing tech companies to lay off workers in large amount as part of cost-cutting plans.
Unemployment Rate
Data from the bureau of statistics suggest that the unemployment rate in the economy of the United States has been pegged somewhere between 3.5 and 3.7 percent since March 2022.
Adult women saw a 3.4 Percentage increase in unemployment while for Whites the increase was 3.2 percent. The jobless rate for adult men was 3.3 percent. It was a high 11 percent for teenagers.
The unemployment rate for blacks (5.9 percent), Asians (2.9 percent), and Hispanics (4.2 percent) showed little or no change in October.
Market analysts and economists are of the opinion that the labor market will continue to witness economic crises as higher interest rates are going to make it hard for businesses to grow. Businesses might also continue to follow the policy of large-scale layoff of employees in order to keep up with increasing costs and expenses.
FOMC of the US Federal Reserve a few days ago hikes key interest rate by 75 basis points posting the borrowing rate at a 10-year high level. Even though the central bank signaled a slowdown in rate hikes, higher borrowing costs are expected to have deep impacts on the domestic economy. It might even push the economy of the USA into a technical recession.
