HOUSTON, Dec. 7, 2020 /PRNewswire/ -- According to
the latest economic analysis from the BBVA Research
team, November's unemployment figures suggest that the labor
market is losing momentum as the pandemic worsens and fiscal
support wanes. Additionally, the ongoing increase in permanent
unemployment reveals the damaging long-term effects of the
pandemic. Both situations highlight the need for Congress to take
action and adds pressure on the Fed to take more decisive
action.
Nonfarm payrolls rose by 245,000 in November, down from 610,000
in October and significantly lower than market expectations,
according to the Bureau of Labor Statistics. To date, the economy
has recovered 56 percent of jobs lost since the start of the
pandemic, while the number of unemployed remains nearly twice the
pre-pandemic levels.
The analysis, co-authored by BBVA Chief Economist Nathaniel Karp and Principal Economist
Marcial Nava, notes the sharp
slowdown in nonfarm payrolls is a response to three key factors: a
decline in government employment resulting from fewer temporary
census workers, a decline in retail trade jobs, and an overall
weakness in the sectors that had been supporting the recovery
including professional business services, leisure and
hospitality.
Education and health services, manufacturing and construction
continue to gain jobs at a decent pace, while transportation and
warehousing posted its largest monthly gain since September 1997, supported by significant job
growth in couriers and messengers. This last category reflects the
massive shift to online consumption during the pandemic, according
to the economists' analysis.
BBVA USA's research team
analyzes the U.S. economy and Federal Reserve monetary policy. For
its analyses, the economists create models and forecasts for
growth, inflation, monetary policy and industries. The Economic
Research team also follows a variety of issues that affect the
Sunbelt states where BBVA USA
operates. Follow their work on Twitter @BBVAResearch and
@BBVANews_USA.
Read the full report here.
See the complete library of BBVA Research publications here.
For more BBVA news visit, www.bbva.com and the U.S.
Newsroom.
Additional news updates can be found via Twitter and
Instagram.
For more financial information about BBVA in the U.S., visit
bbvausa.investorroom.com.
About BBVA
BBVA Group
BBVA (NYSE: BBVA) is a customer-centric global financial services
group founded in 1857. The Group has a strong leadership position
in the Spanish market, is the largest financial institution in
Mexico, it has leading franchises
in South America and the Sunbelt
Region of the United States. It is
also the leading shareholder in Turkey's Garanti BBVA. Its purpose is to bring
the age of opportunities to everyone, based on our customers' real
needs: provide the best solutions, helping them make the best
financial decisions, through an easy and convenient experience. The
institution rests in solid values: Customer comes first, we think
big and we are one team. Its responsible banking model aspires to
achieve a more inclusive and sustainable society.
BBVA USA
In the U.S., BBVA is a Sunbelt-based financial institution that
operates 641 branches, including 330 in Texas, 89 in Alabama, 63 in Arizona, 61 in California, 44 in Florida, 37 in Colorado and 17 in New Mexico. The bank ranks among the top 25
largest U.S. commercial banks based on deposit market share and
ranks among the largest banks in Alabama (2nd), Texas (4th) and Arizona (6th). In the U.S., BBVA has been
recognized as one of the leading small business lenders by the
Small Business Administration (SBA) and ranked 8th nationally in
terms of dollar volume of SBA loans originated in fiscal year
2018.
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SOURCE BBVA USA