Blowout: The U.S. Economy Added 4.8 Million Jobs in June, Unemployment Fell to 11.1%

The U.S. economy added 4.8 million jobs in June and the unemployment rate fell to 11.1 percent, both better than expected. The economy has added around 7.3 million jobs in the past two months. The increase in the ranks of employed workers shows that companies ramped up hiring as the economy reopened and consumers came back to stores, restaurants, and other businesses that had been shuttered in March and April. Job growth was strong in restaurants and bars, reflecting the reopening of those establishments across the country, which added 1.5 million jobs, the Labor Department said Thursday. But employment remains 3.1 million below February’s level, the month before the pandemic hit the U.S. economy. Retail stores added 740,000. There were big gains in clothing stores, furniture stores, department stores, and auto dealerships. Despite the gains, total employment is around 1.5 million below February’s level. Manufacturing employment rose by 356,000 but is down by 757,000 since February. June employment increases were concentrated in the durable goods component, with the auto sector adding 196,000 jobs, accounting for over half of the job gain in manufacturing. Construction employment increased by 158,000 in June, following a gain of 453,000 in May. Employers added the jobs even as much of the country was beset by urban riots, looting of commercial districts, and marches by self-styled “black lives matter” activists calling for the defunding of police and the toppling of statues of political leaders from America’s past. Despite the increase in the number of employed workers, there are still tens of millions fewer Americans working today than February. Compared with a year ago, there are 12.957 million fewer jobs in the U.S. And a separate report on Thursday showed that over 1.427 million Americans were laid off last week, the fifteenth week in a row of one million-plus new claims for unemployment benefits but the thirteenth week in a row of declining claims. The previous week’s level of jobless claims was revised up by 2,000 from 1,480,000 to 1,482,000. Economists had been expecting around 3 million new jobs, although the range of estimates was unusually wide due to the unprecedented nature of the shutdown and reopening. Estimates ranged from 1.9 million jobs to more than 9 million. The unemployment rate was expected to fall to 12.4 percent from 13.3 percent. A report on private payrolls from ADP and Moody’s Analytics on Wednesday estimated that businesses increased their workforces by 2.37 million in June. The estimate for May, which initially showed a loss of 2.76 million jobs, was revised to show a gain of 3 million. The government’s nonfarm payroll data, which covers both private and public sector workers, showed the economy gaining 2.5 million jobs in May, far more than expected and indicating an accelerated pace of the recovery. The number of unemployed people who were out of the labor but rejoined in June rose by 711,000 to 2.4 million. The labor force participation rate increased by 0.7 percentage points in June to 61.5 percent, but is 1.9 percentage points below its February level. Total employment, as measured by the household survey, rose by 4.9 million to 142.2 million in June. The employment-population ratio, at 54.6 percent, rose by 1.8 percentage points over the month but is 6.5 percentage points lower than in February. Average hourly wages are up 5 percent compared with a year ago, although they fell 1.3 percent compared with May. Average wages often rise at times of mass layoffs when lower-paid employees are more likely to lose their jobs. The average workweek slipped from 34.7 hours to 34.5 hours. The number of unemployed persons who were on temporary layoff decreased by 4.8 million in June to 10.6 million, following a decline of 2.7 million in May. But this was more than offset by an increase in the number of permanent job losers, which rose by 588,000 to 2.9 million in June. It’s likely that some people who considered themselves only temporarily laid off now realize they have been permanently cut. The Trump administration’s aid programs appear to be working. Direct relief payments to taxpayers and enhanced unemployment have kept incomes up despite the huge rise in unemployment, which in turn has boosted demand for consumer products. The Paycheck Protection Progam, which provides forgivable loans to small businesses that avoid layoffs, also seems to have supported employment and rehiring. While some in Washington, D.C. may see the better than expected job figures as a reason to pull back on the aid or decline to extend enhanced unemployment benefits past their end of July expiration, a stronger case can be made for extending aid that has played such a crucial role in helping the labor market recover. Without the loans, relief payments, and unemployment enhancement, it is unlikely consumer demand would support such high levels of hiring. Withdrawing the support prematurely would risk a second-stage collapse in employment. White House economic adviser Larry Kudlow on Thursday said the moment for enhanced unemployment payments had passed. The administration is working on ways to modify the unemployment enhancement so that it does not create a disincentive to work by paying people more in benefits than they earned on the job. That could include stepping down the enhancement from $600 a week, which is paid on top of regular state unemployment benefits, to a lower level, perhaps $300 per week. Another possible solution explored by the administration would be to transform the enhancement into a “back to work bonus” that would continue to be paid when work resumed. Kudlow and others inside the White House have referred to this as a “re-employment bonus” that could replace the “unemployment bonus.” On Wednesday, President Donald Trump said he supported a fresh round of relief payments and indicated that he would increase their size from the $1,200 paid in the prior round. The monthly figures are constructed from data collected mid-month, in this case, the week ended June 12. As a result, they may not reflect any slowdown that may have been caused by a renewed surge of coronavirus infections and backtracking on reopenings in some states later in the month.

Much needed good news!!  And, what’s great is just how WRONG the dominantly liberal mainstream media predicted it would be.  Scroll down to see how that idiot Rachel Maddow blew it.  It’s a beautiful thing, lol.  For more on this story, click on the text above.     🙂

Leave a Reply

Fill in your details below or click an icon to log in:

Gravatar
WordPress.com Logo

You are commenting using your WordPress.com account. ( Log Out /  Change )

Google photo

You are commenting using your Google account. ( Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. ( Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. ( Log Out /  Change )

Cancel

Connecting to %s