U.S. | Strong November labor market report amidst rising uncertainty

Summary

After showing signs of slowing in September, the unemployment rate plunged to 6.9% in October. This decline was driven by disproportionately higher job gains in the household survey. Without additional fiscal support the risks of the labor market backsliding in the 4Q20 are growing.

Key points

• Key points:
• The improvements in the labor market continued to be broad-based
• The labor force participation rate increased by 0.3pp to 61.7%
• Industry-level job gains continue to be concentrated in the service sector
• The balance of risks remains tilted to the downside

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