The US Creates 1.37 Million Jobs in August and the Unemployment Rate Falls to 8.4%
The US economy has created 1.37 million net jobs in the month of August, thus adding the fourth consecutive month in positive after the debacle experienced in the months of April and May (more than 20 million jobs destroyed). The data has been slightly below that expected by analysts, who expected the creation of 1.4 million jobs.
The world’s largest economy is experiencing the worst economic crisis in peacetime in memory. The blow has been swift, hard and deep, prompting companies to lay off more than 20 million workers in two months. Now, the labor market is generating net employment again, but there is still a long way to go to absorb all the unemployed that the covid-19 has generated.
“We are still moving in the right direction and the pace of the job recovery appears to have accelerated, but it still looks like it will take a while and probably a vaccine before we get back close to where we were earlier this year. We remain optimistic of that the economy has turned around and that we will continue to see steady progress, “said Tony Bedikian, director of global markets at Citizens Bank, in statements to Bloomberg.
In August, the unemployment rate fell by 1.8 percentage points to 8.4%, and the number of unemployed people fell by 2.8 million to 13.6 million. Both indicators have declined for 4 consecutive months but are still well above the February data, by 4.9 percentage points and 7.8 million, respectively.
Among the unemployed, the number of people with ‘temporary layoffs has fallen by 3.1 million in August to 6.2 million, considerably below the peak reached in April of 18.1 million. However, in August, the number of permanently unemployed increased from 534,000 to 3.4 million.
The number of people employed part-time for economic reasons (denominated with involuntary part-time workers) fell by 871,000 to a total of 7.6 million in August, reflecting a decrease in the number of people working part-time due to lack of work or the conditions of their companies. However, the number of involuntary part-time workers is still 3.3 million higher than in February.
The US Creates 1.37 Million Jobs in August and the Unemployment Rate Falls to 8.4% - /10
The US economy has created 1.37 million net jobs in the month of August, thus adding the fourth consecutive month in positive after the debacle experienced in the months of April and May (more than 20 million jobs destroyed).