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By Isaac Cohen*
Politicians in Washington apparently needed a jolt to persuade them to seek agreement on another relief package for the US economy, besieged by a second wave of corona virus infections. The signal came in the last monthly employment report, issued by the Labor Department last week, revealing that 245,000 new jobs were created in November, with the unemployment rate declining to 6.7 percent, from 6.9 percent in October.
By itself, the November figure indicates that the US economy still is creating new jobs, despite the pandemic. However, it also indicates that job creation has declined for the last five consecutive months, from 610,000 created in October and 4.8 million new jobs last June. True, the unemployment rate decreased, because in November the number of those working, or looking for work, fell to 61.5 percent, the lowest level in four decades. Therefore, at the November rate of job creation, the level attained before the pandemic is projected to be regained by 2024.
The disappointing jobs report, together with the year-end expiration of the benefits granted under the previous relief package, motivated a bipartisan group of legislators to propose a new $900 billion relief package, which could still be approved by the outgoing Congress. Such relief could serve as a bridge, from the “dark winter” described by President-elect Joseph Biden, until the availability of effective vaccines.
*International analyst and consultant, former Director ECLAC Washington. Commentator on economic and financial issues for CNN en Español TV and radio, TELEMUNDO, UNIVISION and other media.
