Weekly economic review & outlook
Job gains slow for November
December 07, 2020
You Need to Know
Week in review
Weaker hiring for November, but unemployment falls again
Payroll gains were only 245,000 for November while the unemployment rate posted its smallest decrease since the start of the economic recovery.
Business surveys moderated slightly for November
The ISM manufacturing and services surveys dropped for November but still showed solid expansion for firms in both major sectors.
Modest growth expected for the CPI
With rising COVID-19 cases likely weighing on consumer demand and the economy still operating well below potential, price growth is expected to be modest once again.
Consumer sentiment should get a boost from positive vaccine news
Despite surging infections and a slowing economy, we expect optimism to rise as a result of positive vaccine news.
Nonfarm payrolls grew by 245,000 for November, and while this is a solid figure in absolute terms it was well below consensus expectations and by far the weakest monthly pace of the recovery. The U-3 unemployment rate still dipped to 6.7 percent, although posting the smallest decline since readings started to fall from April’s recession peak. Moreover, the drop for November was caused by a contraction in the labor force rather than employment gains as the household survey reported fewer employed workers.