January 2021 Job Numbers: Economy in Transition

The Bureau and Labor Statistics released their job report for January 2021. It still seems like we are in a transition period. Some sectors of our economy like leisure and hospitality are taking a hit while others in professional and business services rose indicated a level of change in labor allocation. We are an adaptive species and when the playground fundamentals change, companies will adjust their strategies to maximize their investments (That impacts the jobs available). 

I had hoped our economy would have recovered in terms of GDP by start of 2021 (We were like 3.4% down) and then see the first few quarters of 2021 really start to show an economy coming out of its crisis transition. Perhaps a few year after that we can have a growth spirt as corporate investments and strategies learning during the pandemic take root. 

I watch mostly out of curiosity and see if there is a digital transformation brewing under the surface. This would be reflected in the job reports and other economic indicators but would have to be tracked over time to determine shifts (Our government tracks this kind of stuff) so they can make decisions for policy purposes. 

 The BLS lists the following....

"The unemployment rate fell by 0.4 percentage point to 6.3 percent in January, while nonfarm payroll employment changed little (+49,000), the U.S. Bureau of Labor Statistics reported today. The labor market continued to reflect the impact of the coronavirus (COVID-19) pandemic and efforts to contain it. In January, notable job gains in professional and business services and in both public and private education were offset by losses in leisure and hospitality, in retail trade, in health care, and in transportation and warehousing." HERE.

murad abel