Unemployment reaches record low of 4.2%, despite underachieving jobs predictions

The number of new jobs in November undercut predictions by more than 50%; however, the unemployment rate continued to fall, reaching a low of 4.2%.

On Friday, the Bureau of Labor Statistics released its nonfarm payroll report for the month of November. It reported that 210,000 jobs were filled last month, which was far from predictions of 550,000. Despite the disparity between the predictions and the results, the unemployment rate fell to 4.2%, which is the lowest it has been since pre-pandemic times.

This brought the number of unemployed persons down by 542,000, resulting in 6.9 million. While a huge drop from the initial Covid-19 recession, it is still higher than the pre-pandemic 5.7 million.

There were several demographics whose unemployment rates fell during November: adult men (4%), adult women (4%), Whites (3.7%), Blacks (6.7%), and Hispanics (5.2%). Staying relatively consistent were teenagers (11.2%) and Asians (3.8%).

Also decreasing were the number of permanent job losers, the number of long-term unemployed, and the number persons on temporary layoff, although all three numbers are still higher than they were pre-pandemic.

ADP reported 534,000 new jobs on payroll in November, with BLS reporting 235,000 new private sector jobs filled in November. There were 90,000 new hires in the Professional/ Business Services, 50,000 in the Transportation/Warehouse industries, and 31,000 in Construction and Manufacturing. Retail and the Leisure/Hospitality fields fell, losing 20,000 people and falling to beneath levels, respectively.




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