October 25, 2020

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U.S. Jobs Puts Bright Cap on Week

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(Bloomberg) — The U.S. unemployment rate fell more than expected in August, offering good news...

(Bloomberg) — The U.S. unemployment rate fell more than expected in August, offering good news after troubling signs in Europe’s economy earlier in the week.

The fourth straight monthly improvement in the labor market included a 1.37 million gain in nonfarm payrolls, though the pace of job growth is moderating. The jobless rate dropped to 8.4%. There are still risks, with Congress in stalemate over another stimulus package and companies continuing to announce job cuts.

Europe’s jobs market also looks shaky, with the euro-area recovery losing steam and the inflation rate falling below zero. In the U.K., central bankers are hinting that they’ll do more to keep their recoveries on track.

Here are some of the charts that appeared on Bloomberg this week, offering insight into the latest developments in the global economy:

World



a screenshot of a cell phone: Recovery Stalls


© Bloomberg
Recovery Stalls

Following signs of a downturn in previous weeks, the latest readings show activity stabilizing across most advanced economies, though still some way from pre-Covid levels, according to Bloomberg Economics. With activity at just two-thirds of pre-virus levels, the U.S. is the worst performing of the advanced economies BE is tracking.



a screenshot of a cell phone: Exacerbating Hunger


© Bloomberg
Exacerbating Hunger

The world is hurtling toward an unprecedented hunger crisis. As many as 132 million more people than previously projected could go hungry in 2020, and this year’s gain may be more than triple any increase this century.

U.S.



a screenshot of a cell phone: Number of permanent U.S. job losers troubling, but well below prior recession


© Bloomberg
Number of permanent U.S. job losers troubling, but well below prior recession

The headline U.S. jobs numbers on Friday sent the dollar and Treasury yields higher. But behind that was was more troubling figure: the number of permanent job losers rose by more than half a million to 3.41 million, the highest level since 2013. It points to the ongoing business closures, bankruptcies and investment cuts across the country.



a screenshot of a cell phone: U.S. Household Hunger Before and During Pandemic


© Bloomberg
U.S. Household Hunger Before and During Pandemic

Hunger is surging in the heart of the U.S. breadbasket, showing just how dire the problem has become during the pandemic.

Europe



a close up of a map: Cross-Border Workers


© Bloomberg
Cross-Border Workers

There’s a tax trap looming for Europe’s cross-border commuters and the companies that depend on them, if working from home becomes permanent following the pandemic.



a screenshot of a video game: U.K. Coronavirus Fallout


© Bloomberg
U.K. Coronavirus Fallout

The U.K. economy will struggle to avoid scarring from the current downturn, though the hit could be smaller than after previous recessions, according to Bloomberg Economics.

Asia



a screenshot of a cell phone: Slowing Down


© Bloomberg
Slowing Down

The blow from Covid-19 has put Chinese gross domestic product on track to grow just 2% in 2020, based on Bloomberg Economics’ projections. This is strong by global comparison, but the slowest on record since China began reforms in the late 1970s. Expect more slowdown in the decades ahead.



a screenshot of a cell phone: Mixed Picture


© Bloomberg
Mixed Picture

While many Asian central banks have spent the year slashing interest rates and boosting money supply in response to the economic havoc wrought by the pandemic, deflation fears still managed to crop up across parts of the region.

Emerging Markets



a screenshot of a cell phone: Poor electricity supply weighs on South Africa’s productivity


© Bloomberg
Poor electricity supply weighs on South Africa’s productivity

The single biggest risk to South Africa’s economic outlook remains the availability of electricity, according to Bloomberg Economics. It’s a binding constraint that continues to hold back productivity and investment growth. Without it, the country’s growth potential will remain stuck around 1%, even if progress is made in other areas.



a screenshot of a cell phone: Unemployment Trap


© Bloomberg
Unemployment Trap

Job losses in the wake of the coronavirus pandemic in the United Arab Emirates are getting worse even as much of the rest of the Gulf’s second-biggest economy is starting to heal.

For more articles like this, please visit us at bloomberg.com

©2020 Bloomberg L.P.

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