4.8 million new jobs to reduce unemployment in the United States in June exceeded all expectations

The unemployment rate in the U.S. in June decreased to 11.1%, as businesses closed because of the pandemic, earlier this year, once again hired millions of workers. This writes Fox Business.

4,8 млн новых рабочих мест: снижение уровня безработицы в США в июне превзошло все ожидания

Photo: Shutterstock

In its report, published on Thursday, July 2, the labor Department reported that in June, employers added 4.8 million jobs — the biggest increase in history. Economists had expected the report to show that unemployment fell to 12.3%, while employers added 3 million jobs.

However, the unemployment rate in the country increased by 7.6 percentage points compared with the beginning of the year when he reached a half-century low. Now 12 million more unemployed Americans than in February.

During June, every state has focused on rebuilding its economy. However, it is expected that the level of unemployment that is still at the highest level over the past decade, will remain high, since to remain in force guidelines for social distancing in the face of new cases COVID-19.

New cases exceeded 50 000 for the first time this week. Arizona, Florida, Texas and California are among the States which reported a surge in infections. If the flash will increase and will force the company to shut down again, according to economists, the consequences can be terrible.

Since the report was prepared in mid-June, it is not recorded in the recent closure of some States, which have seen a surge in the number of infected. Disney has postponed a scheduled July opening of its California parks, Apple again moved to close 32 stores in five States, and Macy’s has announced that it will cut 3900 jobs in corporations is about 3% of the total workforce. Texas Governor Greg Abbott made a pause in the plans to open the state, and issued a decree to close all bars in the state and reduced the throughput of restaurants by 50%.

“Due to the fact that last week increasing rates COVID-19 reached new highs in the coming months probably will overtake the economy as the second wave may again close the millions of American small businesses to freeze hiring,” said Andrew Chamberlain, chief economist at Glassdoor.

However, he said the report, which has surpassed all expectations, provided “a strong signal about how quickly we could resume jobs growth in the U.S. and how quickly the business can resume after the country finally establish control over the coronavirus is cause for optimism in the coming months.”

Weekly data from the Department of labor on applications for unemployment benefits showed that 1.43 million Americans filed applications for unemployment benefits last week, suggesting that layoffs continue to grow. The number of Americans receiving assistance for more than two weeks has actually increased by 59 000 to 19.3 million people.

“The number of weekly applications for unemployment remains alarmingly high, barely down from the previous week, said Robert Frick, an economist at the Federal credit Union Navy. — This means that although people are hired in such industries as leisure and hotel business, many quit in other industries, as well as in the bodies of state power and local self-government.”

Indeed, leisure and hospitality once again made up the bulk of the jobs created last month, with the addition of more than 2 million new jobs. About 1.48 million of these jobs were added in food sector is one of the sectors most affected by the pandemic, when the us ordered the closure of restaurants and bars, and the Americans stayed at home — while the hotel business has hired about 238 000 people.

Employment in retail trade grew by 740 000, production 356 000. The industry of education and healthcare hired 568 000 people.

But States face significant budget deficits as a result of the virus of recession, lost 25,000 jobs.

The overall unemployment rate was slightly underestimated because of an error in the classification of Bureau of labor statistics. Persons who were temporarily without work as a result of the virus closures, were still classified as employed in the report, even if they don’t work and should be considered as unemployed.

The Department stated that the difference is “significantly reduced” in June. During the press conference, the President of the United States Donald trump called the message on the reduction of unemployment “spectacular news.”