Elgin Area Chamber Of Commerce: Job Recovery Strengthens, Supply Chain's Pricing Pain Could Rise

Press release from the Elgin Area Chamber of Commerce:

March 07, 2022

Job Recovery Strengthens

The Labor Department said on Friday that employers added 678,000 employees, roughly 230,000 higher than forecasts. January’s jobs growth looked better as well. The agency revised the number up 78,000 to 588,000.

Before the pandemic, the number of unemployed people was at 5.7 million with an unemployment rate of 3.5%. Friday’s report showed 6.3 million unemployed and a 3.8% unemployment rate.

Leisure and hospitality led the gains once again as consumers get out more, although the industry struggles with finding enough people to fill open jobs.

That scenario may persist. The labor force participation rate was little changed at 62.3%. In February 2020, the figure was at 63.4%

Supply Chain’s Pricing Pain Could Rise

Ship fuel prices have reached record highs because of Russia’s invasion of Ukraine and threatens to drive inflation higher.

Prices had been rising since December but spiked up sharply when Russia invaded. On Feb. 25, prices for very low sulfur fuel oil, for instance, averaged $772 per metric ton across 20 global ports. Average prices hit $888.50 on Friday, according to trade publication Ship & Bunker, which tracks marine fuel prices.

Over the same period, marine gas oil shot up from $908.50 to $1,056. Most ships use the low sulfur oil but others have switched to the marine gas oil to reduce carbon emissions.

Rising shipping fuel prices have tracked with global oil prices generally. West Texas Crude closed Friday at $115 per barrel from just over $91 a week earlier and over the weekend surged to more than $126.

Brent crude, the global benchmark, was about $117 on Friday and hit $130 on Sunday.

Source: www.CoStar.com

This press release was produced by the Elgin Area Chamber of Commerce. The views expressed here are the author’s own.