Despite global lockdown and corona pandemic circumstances, the U.S economy managed to create 4.8 million jobs in a month. The Labor Department of the Country said that this is the highest number recorder from 1939 till now. The primary industry sectors contributed to creating new jobs include- restaurants and factories.
These numbers follow May’s job rebound. In May, there were 2.5 million workers who joined the labor market, and this number raised when the lockdown ended.
The data of the Labor Department displays that in the last week of June, the unemployment level fell slightly to 1.43 million only.
Oxford Economics referred to it as “worryingly small decline”.
A lot of companies established in Florida, Texas, and California have decided to postpone reopening due to the revised coronavirus wave. This is likely to hold back the hiring process too.
On this matter, Jerome Powell, the Federal Reserve Chairman, said that the country’s economy has “entered an important new phase”. Further, he said that continuing with the progress will rely on “our success in containing the virus”.
As per the recent numbers released by the U.S. Labor Department, the hospitality and leisure sector introduced more than 2 million jobs, whereas retail hired 7,40,000 new jobs.
To this, Senior U.S. Economist at Capital Economics, Micheal Pearce, said- “the recovery from here will be a lot bumpier, and job gains far slower on average”.
Sophia Koropeckyj, Moody’s Analytics Economist, said that the sudden increase in the number of corona positive cases was “diminishing the likelihood of a continued V-shaped recovery”.
Further, she added- she “expects that the rebound in employment will fizzle and payrolls will flatten out until a vaccine is widely available”. Source BBC News
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