The United States' economy added 4.8 million jobs in June, a new record, as states continued to encourage coronavirus-shuttered companies to reopen, and more people returned to work, even as major layoffs continued.
The US jobless rate dropped from 13.3 percent in May to 11.1 percent, the Department of Labor disclosed on Thursday. Economists polled by Bloomberg had forecast that June saw 3.1 million jobs created.
Although the rebound in jobs volume exceeded earlier projections, a surge in new coronavirus infections in many states is threatening to limit progress in the coming months.
Two primary federal statistics revealed the vulnerable situation that the economy finds itself in the pandemic in three and a half months as the nation continues to replace the over 20 million employees who lost their jobs in March and April.
While businesses have been reopening, a significant number of Americans are finding their jobs are no longer available. According to the Bureau of Labor Statistics, the jobless level in June was 11.1 percent down from a high of 14.7 percent in April but still well above the average of 3.5 percent in February.
Unemployment was down broadly, across demographic categories and levels of education, but remained in double-digit figure for most. The hospitality and leisure market led employment gains, adding 2.1 million positions as bars and restaurants across the nation started to reopen. Retail registered 740,000 jobs, and health and education services added 568,000.
According to Glassdoor website market observers, one strong indicator from the latest employment data is how quickly US job growth can rebound once authorities give companies the go signal to reopen. Economists polled by Dow Jones had been anticipating almost 3 million increase and an unemployment rate of 12.3 percent.
The US Labor Department, in a separate report on Thursday, said that around 1.4 million Americans filed for initial unemployment insurance last week, down from 1.5 million the previous week, an indication that a historically high figure of employees continues to lose their jobs. Claims have hit a whopping 48 million in the last three months.
Meanwhile, the US Congressional Budget Office disclosed Thursday that the current pandemic provided such a shock to the labor sector that it would not totally normalize in the next decade, or even more.
US President Trump touted the jobs that were added during a media briefing called moments after they were published, stating they were a sign that the country's economy is now "roaring back to life like nobody has ever seen before," Eli Rosenberg and Heather Long of The Washington Post, wrote.
