U.S. | The labor market loses momentum, confirming the need for additional stimulus

Summary

Nonfarm payrolls rose by 245K in November, down from 610K in October and lower than market expectations (432K). Meanwhile, the unemployment rate edged down to 6.7% from 6.9% in October. November’s employment figures suggest that the labor market is losing momentum as the pandemic worsens, and fiscal support wanes down.

Key points

• Key points:
• Labor market momentum is losing steam as the pandemic worsens
• The pace of hiring in supportive sectors has eased
• Solid gains in sectors related to e-commerce
• The employment report confirms the need for a second round of fiscal stimulus

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