December 2020 Job Numbers Decline
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I heard on our radio alarm clock this morning that jobs were expected to increase by 71,000 for December. Just now the December 2020 job numbers came out and the country lost 140,000 jobs.
Pre-Market stock markets are showing an increase despite the poor job news. Precious metals are down from yesterdays close.
Job unemployment will remain unchanged at 6.7% looking at the government U3 model; However, the U6 model will be several points higher as official jobless rate does not include several million people who have left the labor force.
I suspect that the decrease in jobs this December, typically a month where job's increase, is due to the expanded business restrictions put on businesses post the Thanksgiving holiday.
Several thoughts come to mind for January and the first quarter of 2021.
> Will January 2021 continue the December drop in job's if states who have restricted commerce do not allow businesses to reopen?
> Once President Elect Biden becomes President, will he restrict businesses for 100-days as he promised during the 2020 election?
Only time will tell.
