Job growth slows in July

A worker performs maintenance on the front of the Lincoln Center for the Performing Arts in New York City on July 29

Left out, of course, were the horrific reports that preceded it, including an April report that saw over 20 million jobs lost, by far the worst in USA history.

With lawmakers and administration officials struggling to agree on a new relief package, President Donald Trump said on Thursday he's likely to sign an order Friday or over the weekend extending the enhanced unemployment benefits and imposing a payroll tax holiday.

However, the Labor Department said some workers continue to be misclassified in the survey, and the jobless rate actually would have been a full point higher than reported.

Connecticut, Georgia, Massachusetts and MI, with an insured unemployment rate of 13.8%, round out the top nine states that the Department of Labor include in their latest report. "The loss of momentum will continue and my concern is that the combination of the virus resurgence and lack of action by Congress could really push employment into negative territory". Coronavirus infections have soared across the country, forcing authorities in some of the worst-affected areas in the West and South to either shut down businesses again or pause reopenings, sending workers back home.

With the latest numbers, more than 55 million initial jobless claims have been filed over the past 20 weeks, indicating the mounting economic fallout related to the pandemic.

At the same time, manufacturing employment rose just 26 000 in July, well below forecasts and held back by declines in payrolls at producers of fabricated metals, machinery and computers and electronic products. This is still higher than the higher rate during the so-called Great Recession of 2007-2009. Demand for goods and services has suffered.

Last month's slowdown in job growth occurred across all sectors, with the exception of government.

The S&P 500 index .SPX is up almost 50% from its March trough.

Over 258,000 retail jobs were added in the month of July, with over half of these jobs being added in clothing and clothing accessory stores, the BLS said. The model that the government uses to strip out seasonal fluctuations from the data normally anticipates education workers to drop off payrolls in July.

The unemployment rate also fell in July, from 11.1% in June to 10.2% in July. Economists see a U or W-shaped recovery. While their unemployment rate is a bit lower than African Americans and Latinos, Asian Americans saw the biggest increase in their unemployment rate. This, however, happened earlier because of the pandemic, which threw off the model.

At its peak, the unemployment rate hit 14.7% in April.

"The U.S. economy was marked by intergenerational, racial, and gender inequality before the pandemic, and today's report does nothing to alter that reality", said Nicole Goldin, a nonresident senior fellow at the Atlantic Council.

The assessment showed that the number of unemployed persons in the United States fell by 1.4 million last month. Auto makers added more than 39 000 workers. The workweek shortened to an average of 34.5 hours from 34.6 hours.



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