In the News

The U.S. economy gained just 245,000 jobs in November, the smallest increase since April and the fifth consecutive month of declining gains.

The unemployment rate fell to 6.7%, according to figures released Friday by the U.S. Department Labor. But one reason the unemployment rate fell was that fewer people are looking for work.

U.S. Rep. Richard E. Neal, D-Springfield, said the numbers show the need for another pandemic relief bill.

“As we’ve seen throughout the course of the COVID crisis, the state of the economy is linked to the severity of the pandemic,” said Neal, reelected this week as the chairman of the House Committee on Ways and Means. “The United States began to experience another devastating surge in cases, hospitalizations, and deaths in November, so it’s no surprise that hiring slowed that month as well. As long as people’s health and safety are at risk, our economy cannot fully rebound.”

Local and state figures are not yet available for November. But in October, the Massachusetts unemployment rate fell 2.4 percentage points to 7.4% from a revised September rate of 9.8%.

The unemployment rate in Greater Springfield was 7.2% in October, down from 10% in September.

Nationally, the number of people among the unemployed who are on temporary layoff decreased by 441,000 in November to 2.8 million. The measure is down considerably from the high of 18.1 million in April but is 2 million higher than its February level. The report uses February as a reference point for the economy prior to the pandemic.

The number of people who lost jobs permanently, at 3.7 million, was roughly unchanged in November but is 2.5 million higher than in February.

The labor force participation rate edged down to 61.5 percent in November, 1.9 percentage points below its February level.

Neal noted that while news about COVID-19 vaccines has been positive, widespread immunization is still months away.

“With that timeframe in mind and knowing that critical pandemic-related unemployment assistance is due to cut off at the end of this month, Congress must provide further support to jobless workers as soon as possible,” he said. “House Democrats have twice passed extensions of this expiring aid, and twice Senate Republicans have blocked it from reaching those in need. With bipartisan calls for action growing on Capitol Hill and the stakes climbing even higher for millions of Americans, I urge Senator McConnell to come to the table and finally work constructively with us to get additional relief across the finish line.”

According to the New York Times, House Speaker Nancy Pelosi, a California Democrat, and Senate Majority Leader Mitch McConnell, a Kentucky Republican, spoke Thursday for the first time since the election about a new aid package and bills that would avoid a government shutdown. McConnell told reporters that he and Pelosi are “both interested in getting an outcome” on those matters, the Times reported.

The Bureau of Labor Statistics report also provided jobs numbers by sector of the economy:

• Transportation and warehousing rose by 145,000 jobs in November but is 123,000 below its February level. In November, employment rose by 82,000 in couriers and messengers and by 37,000 in warehousing and storage. Since February, employment in these industries has increased by 182,000 and 97,000, respectively. Job growth also occurred over the month in truck transportation (+13,000).
• Professional and business services increased by 60,000, with about half the gain occurring in temporary help services (+32,000). Job growth also occurred in services to buildings and dwellings (+14,000). Employment in professional and business services is down 1.1 million since February.
• Health care added 46,000 jobs in November, with gains occurring in offices of physicians (+21,000), home health care services (+13,000), and offices of other health practitioners (+8,000). Nursing care facilities continued to lose jobs (-12,000). Health care employment is 527,000 lower than in February.
• Construction gained 27,000 jobs in November, but employment is 279,000 below its February level. In November, employment rose in residential specialty trade contractors (+14,000) and in heavy and civil engineering construction (+10,000).
• Manufacturing employment increased by 27,000. Job gains occurred in motor vehicles and parts (+15,000) and in plastics and rubber products (+5,000). Employment in manufacturing was 599,000 lower than in February.
• Financial activities added 15,000 jobs in November. Gains occurred in real estate (+10,000) and in nondepository credit intermediation (+8,000). Financial activities has added 164,000 jobs over the past 7 months, but employment in the industry is 115,000 lower than in February.
• Wholesale trade continued to trend up in November (+10,000) but is 281,000 lower than in February.
• Government employment declined for the third consecutive month, decreasing by 99,000 in November. A decline of 86,000 in federal government employment reflected the loss of 93,000 temporary workers who had been hired for the 2020 Census. Employment in local government education continued to trend down (-21,000).