USA: Weak Labor Market Growth
12,000 jobs created, worst figure since 2020
According to analysts, the economy should be one of the topics that will decide the US presidential election on November 5, 2024. And the latest economic data that became available before the election round, namely the labor market figures, are very disappointing.
Only 12,000 jobs were created in October, the worst since December 2020. Otherwise, the unemployment rate remained stable at 4.1%.
This figure, as the White House was quick to comment, is due to the problems associated with the hurricanes and strikes that hit the country, particularly affecting Boeing. “But the US economy remains strong,” commented President Joe Biden, who also spoke about the jobs recovery expected in November.
On the other hand, Donald Trump’s staff did not miss the opportunity to characterize Democratic government policies as “failures.”
Although GDP grew by 2.8% in the third quarter of 2024 and inflation fell to 2.1%, essentially to “physiological” levels, Trump continues to have the upper hand when it comes to economic issues, given that Americans have seen their purchasing power drop significantly in recent years, especially in terms of food and housing costs.
The Federal Reserve (Fed) is scheduled to meet again immediately after the presidential election, on November 6 and 7, which analysts predict should lead to a new easing of monetary policy.
