Remember, remember the disappointing jobs report of November. The United States Bureau of Labor Statistics (BLS) released the latest employment numbers, and they fell short of most market forecasts. Like the financial markets, it has been a volatile situation in the economic recovery, from labor to inflation. Indeed, there have been the highest of highs and the lowest of lows this year. Here is what the U.S. government reported on Dec. 3.
The U.S. economy added 210,000 jobs last month, below the median estimate of 550,000 new positions. This is also down from the 546,000 jobs that were created in October. The unemployment rate fell to 4.2%, better than economists’ projections of 4.5%. Average hourly earnings rose 0.3% to $31.03, average weekly hours edged up to 34.8, and the labor force participation rate climbed to 61.8%.
Unlike previous BLS reports, most of the job creation was not concentrated in the sustenance sectors. Instead, most of the net change in November jobs were in five categories: professional and business services (90,000), transportation and warehousing (49,700), manufacturing (31,000), construction (31,000), and leisure and hospitality (23,000). The government shed 25,000 jobs, while retail trade surprisingly lost more than 20,000 positions. Mining and logging dropped 2,000 people, while information services eliminated 2,000 jobs.
Some market analysts contend that the report was better than most of the media reports suggested once you scratch underneath the surface despite the lackluster top-line number. According to strategists, the BLS data highlighted more people entering the workforce, workers commanding better pay, and hiring remaining on an upward trajectory.
While there may be an argument to be had when it comes to these factors, there is a fact that many financial experts and political observers are forgetting: The U.S. economy is not adding any new employment opportunities since the country is still short approximately four million jobs from before the coronavirus pandemic.
And That’s the End of That Chapter
Well, that was fun while it lasted. After only a few months on Wall Street, it turns out that Chinese ride-hailing juggernaut DiDi plans to be delisted from the New York Stock Exchange and search for a listing in Hong Kong. This led to a sharp selloff of DiDi shares, plummeting more than 22% on the Dec. 3 trading session.
According to a company statement, DiDi will initiate plans to delist from the NYSE “immediately” and launch preparations for listings in Hong Kong. In June, the tech firm filed an initial public offering (IPO) and noted that U.S. shares will be converted into “freely tradeable shares” on another international exchange.
This comes one week after Chinese regulators requested the company executives manufacture a blueprint to exit the U.S. market. Overall, DiDi and other tech businesses in China have come under the boot of federal regulators. Beijing has cracked down on Big Tech over security and data concerns in recent months. And today’s circumstances had been the chief worry for the company when it wrote in its prospectus:
“We cannot assure you that the regulatory authorities will be satisfied with our self-inspection results or that we will not be subject to any penalty with respect to any violations of anti-monopoly, anti-unfair competition, pricing, advertisement, privacy protection, food safety, product quality, tax and other related laws and regulations. We expect that these areas will receive greater and continued attention and scrutiny from regulators and the general public going forward.”
That said, this could establish widespread consternation about investing in Chinese stocks. Not only are the balance sheets of many of these foreign entities worrisome, but the Chinese government’s clamping down on the technology sector might also deter traders from pouring into these equities.
Black Lives Matter: ‘Capitalism Doesn’t Love Black People’
The beautiful thing about capitalism, free markets, and the free-enterprise system is that they do not care about skin color, your religion, or where you come from in this world. There is only a single color that capitalism cares about: The color of money. But do not tell that to the Black Lives Matter organization, which recently tweeted that “Capitalism doesn’t love Black people.”
Twitter is filled with bad takes, but this is perhaps one of the most egregious and nonsensical Twitter ramblings this year since capitalism is the most anti-racist system on the planet.
Indeed, the data alone prove that minorities are better off in capitalist states than many of their home countries that drown in socialist policies. For example, black immigrants, like Ghanaian Americans or Jamaican Americans, earn more than the median U.S. household income ($61,937). Or, as another instance, black business owners are up 38% in the U.S. from February 2020.
But if there were an institution that does not like black Americans, it would be the Leviathan. For decades, the government has imposed present-day policies that have negatively impacted black communities, such as the minimum wage laws and occupational licensing. Decades ago, the Swamp’s measures of redlining in the housing market, the 1931 Davis-Beacon Act, and the gigantic welfare state all contributed to the misery of black Americans. Today, black Americans are much better off than previous generations and black people living abroad.
~ Read more from Andrew Moran.