The coronavirus pandemic continues to affect the U.S. economy. The U.S. economy added more than 1.7 million jobs in July. Based on the information provided by the Labor Department, nonfarm payrolls increased by 1.763 million for the month. Importantly, the unemployment rate dropped to 10.2% from its previous 11.1%. Furthermore, this result surpassed expectations.
Moreover, an alternative measure that includes discouraged workers, as well as underemployed who occupy part-time jobs due to economic reasons, declined from 18% to 16.5%.
Importantly, it was the third straight month of improvement after the spring lock down. As a reminder, millions of people across the country lost their jobs due to the pandemic. As mentioned above, the unemployment level fell to 10.2%. However, during the Great Recession, the worst outcome was at 10%.
Moreover, in June the U.S. economy added more than 4.8 million jobs. Notably, May and June saw a combined increase of more than 7.5 million. Interestingly, it was the fastest two-month rise in U.S. history. People should take into account that, the reason for those big gains, primarily was the return of displaced workers who were laid as the country was trying to deal with the coronavirus pandemic.
Nevertheless, despite a three-month gain of 9.3 million workers, the total unemployment level remained 12.9 million below its February level. Notably, the May and June counts were revised up by a total of 17,000.
U.S. Economy and Coronavirus Pandemic
It is worth noting that, the total unemployment level is at 16.3 million Americans. According to the survey of households, the number of unemployed fell by more than 1.4 million. For example, in April the number of jobless people was higher by several million.
It is not a secret that bars and restaurants suffered heavy losses due to restrictions. However, leisure and hospitality led the month with a growth of 592,000 jobs. Notably, eating and drinking establishments account for 502,000 jobs.
Moreover, the number of people employed by the government increased by 301,000. At the same time, retail added 258,000 jobs. Also, professional and business services created 170,000, other services added 149,000, and health care accounted for 126,000.
Notably, social assistance increased by 66,000. Moreover, manufacturing rose by 66,000.
Interestingly, unemployment fell across demographics. For example, the rate for Whites fell from 10.1% to 9.2%. In the case of Blacks, the unemployment rate declined from 15.4% to 14.65% and among Hispanics, unemployment fell 14.5% to 12.9%.
The state of the local economy is far from being ideal. It will take time to get the world’s largest economy back on track.
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