Instant Reaction: Jobs, March 6, 2020

“Another fabulous month of job creations in America. However, this data is before convention and travel cancellations by many businesses as a precautionary measure against coronavirus spread. Looking back to the tragic events of September 11, 2001, when subsequent travels were greatly reduced, net job losses reached 1 million in five months and then continued throughout 2002. No event is ever the same, though; the current employment situation looks to be in better shape. Because of the extremely tight job market condition of a 3.5% unemployment rate (compared to 5.0% in September 2001), companies will be more reluctant to let workers go, knowing that finding workers has been difficult. Furthermore, any positive news on vaccine discovery will quickly return market conditions to a strong position. In the meantime, the construction sector is adding jobs at a solid pace of 3% from one year ago, which is twice as fast as the rest of the economy.”