The November 2021 jobs report was a mixture of disappointing job growth and a steep drop in unemployment.
But despite the confusing headline numbers, most sectors of the US economy added to their payrolls last month with business and professional services leading the gains.
That industry added 90,000 jobs in November, thanks to strong hiring of business consultants (12,000), accountants (7,600) and construction services workers (10,400) such as cleaners , landscaping and pest control.
Transportation and warehousing also posted a strong November with 49,700 jobs added as millions of Americans shopped online just before the holiday season. Postmen and messengers, workers who receive and deliver packages and letters, saw jobs increase by 26,800 last month while storage and warehousing facilities added 8,800.
Food producers, which convert commodities like sugar cane and livestock into ready-to-eat products, helped lead the broader manufacturing sector in November with an increase of 7,400 positions. The entire manufacturing industry added 31,000 jobs last month.
Construction jobs also added 31,000 in November, helped by widespread hiring. Construction workers, civil engineers and specialty commercial contractors all saw job gains last month.
While the November report continued to show strong US consumer demand for goods, the services sector of the economy presented a more mixed picture.
Leisure and hospitality sectors, which tend to rise and fall based on the prevalence and severity of Covid-19 cases, added 23,000 last month. That is in stark contrast to the 170,000 payroll increases the industry saw in October and 108,000 from September.
There have been 2.4 million new jobs added to this point in 2021, but jobs in this industry have fallen by 1.3 million, or 7.9%, since February 2020. .
Retail, which typically sees an uptick in hiring in the two months leading up to the holiday season, has actually lost jobs. The industry posted a net loss of more than 20,000 positions last month with significant declines at clothing stores (down 17,700) and department stores (down 7,500).
It is not likely that the introduction of the omicron variant has had a significant impact on those areas given the small number of cases reported in the US to date.
Some economists suggest that the deceleration in the leisure and hospitality sectors could be the result of a tightening labor market and new earning potential for chefs, waitresses and housekeepers. other goods.
Gus Faucher, chief economist at PNC Financial, writes: “Wage growth was particularly strong in leisure/hospitality services and retail trade, suggesting a tightening labor market for workers. This move is causing companies to raise wages.”
Wage growth was significantly stronger in the leisure and hospitality sectors. While average hourly earnings for all private payrolls increased by 0.26% from October to November, workers in the leisure and hospitality sectors saw their hourly wages increase by 0. ,84%.
– CNBC’s Nate Rattner contributed reporting.
