Finally Some Good News: Economy Starts to Bounce Back, 4 million Jobs Created in June
After months of record-low job losses due to the economic shutdown, the nation is starting to bounce back as the unemployment rate fell to 11.1 percent.
The economic recovery was way better than what most experts have predicted. In fact, after seeing more than 40 million unemployment claims, the U.S had just added 7.3 million jobs in the past two months, with an additional 5 million in the month of June. Thanks to the swift economic reopening, companies are starting to hire more employees. According to a report from the Labor Department, the highest increase was among restaurants and bars, adding a whopping 1.5 million jobs. There were also gains in retail, with 740,000 new jobs as clothing stores, department stores, auto dealerships, and furniture stores are getting an uptick.
Even manufacturing companies that had shut down following the state’s stay at home order are starting to re-open, providing additional 356,000 jobs. By far, the auto sector had made the most impact with 196,000 job gains, while construction employment increased by 158,000. Nonfarm payrolls also increased to 4.8 million, which was even greater than the 2.0 million that experts have forecasted.
However, the nation is still dealing with massive unemployment, as it remains 3.1 million below the February level. This might be attributed to low consumer confidence following the ongoing political unrest in the country. Experts believe that consumers are less likely to save, rather than spend given the wide-scale looting, anarchy, and violence that had erupted this month.
While there has been a substantial increase in employment, the numbers still fall short a few million from the robust job market that the country had in February. To point this out there had been 12.957 million fewer jobs as compared to a year ago. In a separate report, the Labor Department claimed that 1.427 million Americans lost their jobs last week. While unemployment remains high, today marks the thirteenth week in a row that there have been a decline in unemployment claims.
The increase is a clear proof of President Donald Trump’s ability to turn the economy after the devastating effects of the coronavirus pandemic. “Today’s announcement proves that our economy is roaring back. It’s coming back extremely strong,” Trump boasted during a press conference. He also claimed that these are “historic numbers,” as unemployment for African-Americans fell from 16.8% to 15.4 percent.