The US added 1.8 million new jobs in the month of July amid the coronavirus pandemic which forced most of the states in the US to pause or reverse their reopenings. After this new addition in the economy, the unemployment rate decreased to 10.2 percent from 11.1 percent.
Considering, this fall in the unemployment rate, it has fallen for three months in a row, however, it remains above the 10 percent high of the Great Recession (2007-2009) and also it is three times the 3.5 percent rate from February, before the coronavirus outbreak in the US
Commenting on this achievement Tony Bedikian the managing director of Citizens Bank said: “We have seen a very troubling increase in COVID-19 cases in many states that had reopened for business, but we continue to be cautiously optimistic that the overall US economy has turned a corner, and that the solid job gains announced today will be sustained.”
The addition of jobs was mainly observed in the hospitality and leisure industry, which increased by 592,000 after the coronavirus restrictions were eased. Food services and drinking places were other winners. They witnessed an increase of 502,000 jobs, however, this addition is still down by 2.6 million since February 2020.
Moreover, the government jobs in the US increased by 301,000, while retail businesses, manufacturing industry, and education & health services added 258,300; 26,000; and 215,000 workers. Thus, these numbers reflect the economy’s struggle to recover from the ongoing crisis.
According to the experts, these numbers are low when compared with earlier records but came amid the pandemic, proving that temporary layoffs are becoming permanent.
The current unemployment level in the US is highest in this decade and according to the experts it is expected to remain elevated because of the social distancing guidelines set by the government to curb the coronavirus spread.
William Rodgers the former chief economist at the US Department of Labor said the employment rate would not return back to normalcy until the coronavirus is under control.