According to data from the Bureau of Labor Statistics, 1.8 million nonfarm payrolls were added in July, exceeding the 1.5 million additions that were by predicted by leading economists. The unemployment rate in the country came in at 10.2%, down from 11.1% in May and 14.7% in April – the highest rates America has seen since the Great Depression.
“Joblessness is still tremendously high, but it is moving in the right direction,” Nick Bunker, Economist at Indeed.
Employment Rates Moving in the Right Direction
The new job additions to the economy are good news as the US is making an effort to recover from all the economic damage caused by the coronavirus pandemic and the measures implemented to contain the spread of the disease, which included states shutting down businesses. Reopening plans for some states have grounded to a halt or been rolled back as the virus has seen new spikes across the country.
Employment has gone up in most industries and sectors, the Friday report shows, with the biggest gains being in leisure and hospitality, which added 529,000 new jobs in July. The only sector to shed jobs for July was mining, with construction jobs seeing minor changes in numbers from June. Temporary layoffs fell 1.3 million in July to 9.2 million in total – about half of April’s level, although permanent job losses remain similar to the previous month, coming in at 2.9 million.
Uncertainty remains present as COVID-19 cases spiked hard in July, as well as the expiration of the additional $600 weekly unemployment benefits, which was an economic lifeline for millions. A new stimulus package is in the works, although it’s unclear when it will be signed off on, as Democrats and Republicans continue to argue on several key issues.
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