Weekly economic review & outlook
Labor market still stressed
November 30, 2020
You Need to Know
Week in review
Layoffs rising with the spike in infections
Initial jobless claims climbed for a second straight week through November 21 as businesses face increased government mandates to curb virus infections.
Sales of new homes remained strong in October
Sales were little changed from September, which were at the fastest pace since 2006, as homebuyer demand continues to be hot this year.
Strong job growth should continue into November
We expect a gain of 748,000 in nonfarm payrolls, with a modest decrease in the unemployment rate and a bit faster increase in average hourly earnings.
Business surveys expected to pull back slightly
The ISM manufacturing and services indices are likely to slip modestly for November, based on lower readings for regional PMIs and Federal Reserve Bank surveys.
Initial jobless claims for the week ending November 21 surprisingly moved up for a second consecutive week. The 778,000 reported claims were the highest in more than a month while the four-week average climbed for the first time since July. The upward trend for November coincides with a string of renewed restrictions from state and local governments to try to contain the recent spike in COVID cases.