Photo: CNN
By Isaac Cohen*
Despite the restraining measures adopted by the central bank, in November job creation remained strong in the United States. Last week, the Labor Department informed that 263,000 new jobs were created in November, slightly down from the revised figure for October of 289,000. The unemployment rate remained unchanged at 3.7 percent and wages increased 5.1 percent from a year earlier, less than the 7 percent rate of inflation.
Nonetheless, some sectors of the economy are exhibiting the restrictive impact of the interest increases approved by the central bank throughout the year. For instance, in November, retail and wholesale trade lost 30,000 jobs and transportation and warehousing 15,000, while there was less employment in sectors sensitive to increased interest rates, such as residential construction and real estate.
By contrast, job creation was vigorous in the leisure and hospitality sector with 88,000 new jobs created in November, while healthcare added 45,000 new jobs. Also, most conspicuous were the job cuts announced by some big tech companies, such as Amazon, Meta and Twitter.
One of the main questions generated by these mixed signals is how the Federal Reserve will deal with them during the next Open Market Committee meeting, scheduled for December 13-14 in Washington. The expectation is that after 4 consecutive increases of 0.75 percent, which have raised the federal funds rate to a range between 3.75 and 4 percent, the next meeting will approve an increase of at least 0.50 percent.
*International analyst and consultant, former Director ECLAC Washington. Commentator on economic and financial issues for CNN en Español TV and radio, UNIVISION, TELEMUNDO and other media.
