Market Commentary

The Work Force

New Job Openings

New Job openings in October rose to 6.7 million from 6.5 million, however, layoffs increased and are likely to continue to do so as covid spreads. Productivity rose 4.6% in Q3 a bit lower than in Q2 at 4.9%. Finally, unit labor costs for the same quarter fell 6.6% a little better than the fall of 8.9% in the quarter before.

So despite adding new jobs every month since the start of reopening, these numbers tell us that the economy is doing better but not great. If you add in the new restrictions in various states from covid, the numbers are likely to look worse before they look better for this month and next.

There will be a new stimulus out of Washington now that the election is over, though the battle for the presidency is not. That stimulus will be needed as the vaccine will take time to distribute. With that distribution well in place, the restrictions on the economy will come off. That should result in a large growth spurt.