The rate had been projected to rise from 6.7% to 6.8%, which would have been the first increase in the jobless rate since April, the Associated Press and others reported. Observers think, however, the jobless rate has been held down by millions of Americans who have given up or stopped looking for jobs for various reasons.
Tom Maher, who owns a Manpower staffing agency franchise in Kettering, said his business is seeing fewer job openings and requests for workers.
“We have seen about a 20% decrease in the number of open requisitions from early December to today along with a close to 30% decrease in new requisitions,” Maher said. “The holiday weeks do affect these drops.”
That means the Manpower franchise has about 20 % fewer jobs to fill than early December and is receiving about 30% fewer requests from customers for additional employees.
“It is normal for a January drop and what we are seeing this year is only slightly worse than previous years,” Maher said.
PNC Financial Chief Economist Gus Faucher on Friday expected better days ahead, however.
“Conditions should improve by the spring as vaccine distribution continues, warmer weather allows for more outdoor activity, consumers spend their stimulus funds, caseloads fall, and states gradually loosen restrictions on businesses,” he said. “Job growth at the end of 2021 will be very strong and sustained, with the unemployment rate at around 6% and falling.”
Nationwide Chief Economist David Berson also believes the jobs slowdown is unlikely to persist.
“Although the next couple of months could also be weak,” Berson cautioned in an email. “The combination of increasing vaccinations — leading to easing of government restrictions — and significant fiscal and monetary policy stimulus should boost the economy this spring, probably with extremely strong growth over the second half of the year.”
Eric Spangler, a resident of Anderson Twp. near Cincinnati, said he has not been able to reach the Ohio Department of Job and Family Services since his state benefits expired in the fall. He has since been denied extended benefits, but he hasn’t been given a reason why, he said Friday.
“No, you see a message that says ‘denied,’” said Spangler, a former editor at Cincy magazine.
“The job market has been awful,” he added. “Every time I apply, I don’t a response back.”
Employment declines in leisure and hospitality, private education, and government were partially offset by gains in professional and business services, retail trade, construction, and transportation and warehousing, the government said.
Government employment declined by 45,000 last month. Employment in local government that excludes education declined by 32,000, and state government education lost 20,000 jobs.
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