[Epoch Times November 13, 2021](Epoch Times reporter Gao Shan compiled a report) As inflation in the United States climbed to its highest level since the early 1990s, the consumer confidence index fell to a 10-year low in November point. Although policymakers have tried to convince people that the current price spike is only a temporary phenomenon, it is counterproductive.
According to the National Broadcasting Corporation Financial Channel (CNBC), the reason for the plunge in market sentiment was that workers resigned and set a new record. In the job market, the current number of job vacancies is nearly 3 million more than the number of people looking for workers. .
The US Labor Department reported on Friday (November 12) that 4.43 million people had resigned. This figure exceeds 4.27 million in August and brings leavers to 3% of the total workforce. This is also a record ratio. According to the Labor Department, this is part of the so-called “resignation wave” and a sign of confidence in the US labor market.
At the same time, according to preliminary data released on Friday, the University of Michigan Consumer Sentiment Index plummeted to 66.8 in November. This is the lowest point since November 2011. The data for October was 71.7, which means that the data for November dropped by 6.8%. In addition, the data is also much lower than Dow Jones (Dow Jones) previously expected 72.5.
According to the survey, consumers expect that the inflation rate will be higher in the future, and their expectation of the inflation rate in the next 12 months will rise to 4.9%.
The survey’s chief economist Richard Curtin said: “In early November, consumer confidence fell to its lowest level in 10 years because of rising inflation. Moreover, consumers are increasingly believing that, Effective policies have not yet been formulated to reduce the damage caused by soaring inflation.”
The survey shows that a quarter of consumers in the United States have lowered their standard of living due to rising prices. Half of the households expect that after adjusting for inflation, their real income will fall in the next year.
The average hourly wage in October increased by 4.9% year-on-year. But this seemingly strong growth has not kept up with the pace of inflation. Inflation has caused real wages to fall by 1.2% compared to the same period in 2020.
Curtin also added: “The prices of houses, cars and durable goods are rising more frequently than at any time in more than half a century.”
According to the Consumer Price Index released on Wednesday (November 10), the inflation rate in October was 6.2%. The index also shows that US consumers’ confidence is at a low level for policymakers that are taking appropriate measures to deal with inflation.
At the time when the consumer confidence index was released, the approval rating of US President Joe Biden (Joe Biden) was also declining, as consumers became increasingly concerned about inflation.
Earlier this week, the White House made some suggestions to try to help with this problem, including trying to ease the cargo backlog in major ports. Bottlenecks in the supply chain have contributed to price increases to a certain extent. In addition, strong consumer demand and rising natural gas prices caused by the government’s attempts to ban fossil fuels are also one of the reasons.
The Federal Reserve (Federal Reserve) is also facing a similar dilemma because it is trying to accomplish its mission of maintaining price stability without raising interest rates. Central bank officials said last week that they expect to start withdrawing policy support, but until the plan is completed (possibly in the early summer of 2022), they will only slightly reduce monthly bond purchases in an incremental manner.
Critics of the Republican Party accuse it of the trillions of dollars in government spending and the Fed’s loose policies that fuel inflation. Both Biden and Fed Chairman Jerome Powell said they expect inflationary pressures to ease later next year.
Workers resign and set a new record
While people’s confidence in inflation continues to decline, the number of workers leaving in September hit a record again, an increase of 1.1 million from the same period last year, when the turnover rate was only 2.3%.
From an industry perspective, the turnover rate in the leisure and hotel industry was 6.4%, an increase of 0.3% from the previous month; the turnover rate in arts, entertainment, and entertainment also increased significantly, rising from 3.2% to 5.7%; accommodation and catering services The industry has remained stable at 6.6%, the highest among all industries, which is not unexpected.
Most of the workers who quit this year have moved to higher-paying jobs.
Tracking data on wage growth from the Federal Reserve Bank of Atlanta shows that overall wages in September increased by 3.6% year-on-year, and the wages of workers who changed jobs increased by 4.3%. Income growth is mainly concentrated on high-income groups, with the income of the highest-income quartile increasing by 4.9% in the past 12 months.
A total of 6.46 million people were recruited this month, a slight decrease from August.
These people leave their current positions because the number of available jobs is still increasing.
The U.S. Department of Labor said in its Job Openings and Labor Turnover Survey that there were 10.44 million job vacancies in the United States, much higher than the 7.68 million job applicants in September. The survey data lags one month behind the non-agricultural employment report, which has received much attention from the Ministry of Labor.
Editor in charge: Li Yuan#
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