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Fannie Mae Sees Slow Recovery for U.S. Labor Market
Despite further job gains in October, Fannie Mae’s weekly Economic & Housing Note says a complete labor market recovery isn’t likely to occur soon. Nonfarm payroll employment increased by 638,000 in October, according to the Bureau of Labor Statistics, representing the fourth consecutive month of deceleration.
“Total nonfarm employment remains approximately 6.6% below the level seen at the peak in February,” according to Fannie Mae. More than half of October’s job growth was concentrated in the leisure & hospitality and professional & business service sectors.
Government employment fell by 268,000, driven by large declines in temporary Census workers and state & local education jobs. Residential construction employment rose 23,800 for the month, though.
COVID-19 cases are again on the rise, and while Fannie Mae doesn’t see the same breadth of shutdowns occurring, numerous localized shutdowns and a further decline in consumer sentiment could lead to a pullback in consumer spending.
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- ◦Economy
