Heading for a recession? A million jobs may have vanished in the US

The job growth scenario in the United States has been one of the worst this year, according to the trends, compared with the last decade. There are serious fears that US could be seeing a major recession owing to facts that a million jobs have vanished into thin air over the course of the year.

Payroll growth declining rapidly

Goldman Sachs Group Inc. and Wells Fargo & Co. economists have estimated that the growth of payroll employees has been negligible, and has demonstrated a downward trajectory instead, and things could go for the worst, if reports are to be believed.

Meanwhile, JPMorgan Chase & Co. forecasters see a decline of about 360,000 in terms of payroll, while Goldman Sachs is of the opinion that this number could touch nearly a million, based on their latest calculations.

Final numbers of payroll growth due next year

The American citizens will have to wait until next year to understand the clear case of the labor market in the United States, and therefore, until then, it is best not to panic. However, a lot is dependent on the next few months, as these recent reports by economists could influence Fed Chair Jerome Powell’s speech in Wyoming during the week’s end, as the pressure keeps mounting on the Fed.

Donald Trump joins the party

Donald Trump has also begun raising concerns around job gains and accused the government of hiding the real job data in their initial reports. With Trump aiming for his second term as US President in the next few months, employment would be one of his top lookouts for expanding his vote base and it is expected that he would be capitalizing on these issues.

FAQs:

Is there an ongoing recession in the United States?
As of now, US has not entered the recession period officially, but economists are concerned that it could do so following some of the external factors, including job cuts. Is United States seeing lack of jobs?
If reports are to be believed, nearly a million jobs may have vanished from the market, in the past year, triggering alarm bells across the country.