Charting the Global Economy: Chill Descends on U.S. Job Market

(Bloomberg) -- Resurgent coronavirus infections are putting a chill on U.S. job creation, manufacturing in China is gaining pace and the final stages of Brexit negotiations are complicating the U.K.’s recovery prospects.

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

U.S.

Surging payroll growth in the transportation and warehousing sector -- the most since 1997 -- accounted for more than half of total U.S. job gains in November, according to the government’s monthly employment report that proved disappointing. Total payrolls rose by 245,000 during the month, well short of estimates, and hiring was concentrated in fewer industries as the pandemic continued to disrupt.

President-elect Joe Biden announced his economic team that will be charged with keeping the recovery on track, while balancing the need for more fiscal stimulus and a rapidly expanding budget shortfall.

• Listen to this week’s episode of the Stephanomics podcast for more.

Europe

With the U.K. economy suffering more from the coronavirus than most advanced nations, the stakes couldn’t be higher as Brexit trade negotiations enter their endgame.

As with economies everywhere, the U.K. has suffered a deep slump because of the virus. But the housing market, juiced in part by a sales-tax cut, is in a mini-boom, with demand and prices surging. That’s proving an issue for prospective first-time buyers, especially in London.

Falling consumer prices can be found across the euro area, but in some quarters it’s the fear of steep and entrenched declines -- a deflationary trap that drags wages and ultimately brings the whole economy down -- that has people worried most.

Asia

An official gauge of activity in China’s manufacturing sector rose faster that expected, suggesting the economy’s recovery is gathering pace.

The U.K. is granting the most special travel documents to Hong Kong residents since the 1997 handover, bolstering predictions of a mass exodus as China tightens its grip over the former British colony.

Emerging Markets

The coronavirus pandemic has had a devastating impact on the world’s poorest countries, pushing millions into extreme poverty: More than 32 million additional people in the poorest countries in the world now live on less than $1.90 a day -- a direct result of the outbreak, the UN Conference on Trade and Development said

World

The resurgence of the coronavirus pandemic has dramatically weakened the global recovery and it could get a lot worse if governments withdraw support too soon or fail to deliver effective vaccines, the OECD warned.

The pandemic is depressing wages, with International Labour Organization data showing the brunt is being borne by women and the lowest paid.

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