New Jobs Report
August Unemployment: 8.4%
Out of double digits, but not out of the woods.
3 Quick Facts: Jobs Report
- Better Than Expected Unemployment: Economists thought the unemployment rate would be closer to 10% but hiring was better than predicted.
- Job Growth: 238,000 temporary jobs added by the government for the U.S. Census. Retailers added 249,000 jobs.
- Hiring Slowed: Economy added 1.4 M jobs – that was down from July when it added 1.7M.
“We’re in a very deep hole, and we’re working our way out of it. We continue to see very good improvement in the labor market, but I think the improvement is going to be slower going forward.”
Economist Gus Faucher PNC Financial Services Group. The Labor Dept. credited “resumption of economic activity” for the job growth in August, suggesting the driver is rehiring rather than new job creation.
Something To Consider
HISTORIC: Previous to the pandemic, America had never recorded more than 700,000 people filing for unemployment benefits in one week. The 4-week moving average hovers under 1M.
LAYOFFS: United Airlines, Bed Bath & Beyond, & MGM Resorts recently announced major layoffs, sparking concern this reflects a permanent, rather than temporary, adjustment.
The unemployment rate in January 2020 was 3.6% – the lowest in more than 50 years. The economy has shed more than 22M jobs during the COVID-19 pandemic – about half have been recovered. Story to watch? Lawmakers return to D.C. after Labor Day at odds over additional economic stimulus, incl. additional benefits for the unemployed.
Here’s the Jobs Report
Here’s a good read of the latest Jobs Report: READ HERE
Context for Jobs Report this is what was written back in February:
The Labor Department reported Friday that the U.S. economy added 273,000 new jobs during the month, while the unemployment rate was 3.5%, matching its lowest level in more than 50 years. An alternative measure of joblessness that counts those not looking for work and holding part-time jobs for economic reasons edged higher to 7%.
Historic Context For Those Filing For Unemployment: The nearly 1 million people who keep applying for unemployment aid each week point to a sluggish pace of improvement. Before the pandemic struck the economy in March, the number of people seeking jobless aid had never topped 700,000 in a week, not even during the depths of the 2007-2009 Great Recession. The economy has recovered 9.3 million, or only 42%, of the jobs that were lost in March and April.
by Jenna Lee,