In the US, non-farm payrolls, which is expected to increase 105K according to the Bloomberg terminal, increased only 49K in January, while the unemployment rate fell to 6.3%. It is seen that the unemployment rate decreased by 0.4 percentage points and the number of unemployed decreased by 10.1 million. The labor market continued to reflect the impact of the coronavirus (COVID-19) pandemic and efforts to contain it. Broadly defined unemployment also declined to 11.1%, in line with the headline unemployment rate. There is a negative revision from the data of the previous month: While the December employment increase was revised to -227K and the private sector employment change to -204K; In January, it is seen that the private sector was able to produce only 6K new job positions and 43K of the net employment increase came from the public.
If we look at the sub items; In January, significant business gains in professional and commercial services and education were offset by losses in entertainment and hospitality, retail trade, healthcare, shipping and storage. In January, employment in vocational and business services increased by 97,000 and temporary assistance services accounted for most of the gains (+81,000). Job growth also occurred in management and technical consulting services (+16,000), computer systems design and related services (+11,000), and scientific research and development services (+10,000). Labor force participation rate decreased to 61.4%. The overall workforce pool tends to shrink and Covid measures still keep the service sector largely closed. While the mutant virus and new wave will negatively reduce the risk, vaccination will make the opening effect felt largely.
The Senate approved Biden's budget plan to advance its $ 1.9 trillion COVID aid package. Thus, Democrats will not need Republicans' help for the stimulus package. The critical issue was the $ 1400 paychecks and Biden had said he would never back down from that. 400 billion USD decision resource will be transferred to vaccination and fight against the epidemic, and 350 billion USD will be transferred to local governments. The sooner a package close to the original size is accepted, the better it will be.
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