Last month, as the economy continued to resume, US employment surged again, with employers adding 943,000 jobs, despite a surge in COVID-19 cases and a persistent labor shortage.
According to the Ministry of Labor, the unemployment rate calculated from another household survey fell from 5.9% to 5.4%.
Economists surveyed by Bloomberg estimated that 900,000 jobs were added last month.
So far, the United States has recovered 16.7 million, or 74%, of the 22.4 million jobs it lost last spring, 5.7 million below pre-pandemic levels.
Leisure and hospitality, the industry’s hardest hit by the pandemic, once again drove profits, adding 380,000 jobs, including 253,000 in restaurants and bars, and more states ending capacity limits. ..
Rural, state, and private education have added 261,000 jobs, but for the second straight month, these advances represent the strangeness of workers’ seasonal adjustments. School employees usually receive salaries in June and July. However, fewer education workers were hired for the pandemic, which reduced the number of dropouts and led to significant seasonally adjusted profits.
Professional and business services have added 60,000 jobs. Transport and warehousing, 50,000; and healthcare, 37,000. Despite a long-standing supply chain bottleneck caused by a pandemic, manufacturing has added 27,000 jobs.
The number of Americans on layoffs fell by 572,000 to 1.2 million as restaurants and stores recalled layoffs as business constraints were lifted and customer demand surged. rice field. This number is down from the initial 18 million people in the pandemic. Approximately 14% of the unemployed said they were layoffs, down from 19% last month. It’s getting narrower, but that means there’s still room for further profits.
The number of Americans permanently dismissed decreased by 257,000 to 2.9 million.
Just as the state has lifted business constraints, the economy is filling the benefits of the massive spending turmoil of consumers with stimulus.
At the same time, supported by the Delta variant, the number of new daily COVID-19 cases increased about 7-fold from mid-June to about 90,000 after a steady decline in the first half of the year. According to the Centers for Disease Control and Prevention, about 60% of the adult population is fully vaccinated, but new daily vaccinations have slowed in recent months. And the South and West are working on relatively low vaccinations and high infection rates.
Most major economists do not expect a surge in COVID to significantly reduce forecasts for historically strong employment and economic growth this year. This is mainly because the state has not reinstated business restrictions, at least so far.
The big wildcard is how quickly the shortage of workers, who are squeezing salary increases, will be alleviated. Goldman Sachs said continued unemployment insurance claims (roughly representing the number of people still dismissed) plummeted last month in 26 states that cut off federal bonuses early. The remaining states plan to phase out enhanced benefits by September, which may encourage more Americans to look for jobs and accept offers.
However, Oxford Economics economist Lydia Busour said, “Early evidence shows that the impact of the expiration of benefits to date is minimal.”
The reopening of more schools in September should also help many parents who have cared for distance learning children return to the workforce. However, Delta Variant can keep some workers at home, Busor said.
Despite the question mark, Oxford expects a record increase in employment for about 8 million people this year as well.
Several other indicators showed slow employment growth last month. Homebase, which provides payroll software to small businesses, says the number of employees working in July fell by 0.4%. Also, according to payroll company ADP, the private sector has added just 330,000 jobs, well below estimates.
Despite the surge in COVID, 943,000 jobs have been added
Source link Despite the surge in COVID, 943,000 jobs have been added