finance
monthly
Personal Finance. Money. Investing.
Contribute
Newsletter
Corporate

US Economic Recovery Slows Sharply

The latest government figures show the unemployment rate improving, but job growth continues to stagnate.

Posted: 2nd October 2020 by
Finance Monthly
Share this article

A new report from the Labor Department – the last that will be issued before the presidential election in November – showed that US employers added 661,000 new workers in September, far below the Dow Jones’ projected addition of 800,000.

Unemployment saw a notable decline, falling to 7.9% from 8.4% at the end of August. Unemployment among African Americans fell from 13% to 12.1%, while the Asian American rate fell from 10.7% to 8.9%.

The addition of 661,000 non-farm payrolls cements September as the fifth consecutive month of net job gains. Leisure and hospitality employers were responsible for the largest share, as 318,000 jobs were brought back. Two thirds of these returning jobs are reported to have come from reopening bars and restaurants.

Retail also added back 142,000 jobs, a significant step down from the 261,000 the sector added in August despite making up a considerable portion of September’s gains.

Government jobs were the only sector to post net losses during the month, with over 216,000 education jobs cut as schools remain closed. A number of temporary census workers hired in August were also let go in September.

[ymal]

The report reflects surveys conducted three weeks prior to publication, and notes that 26 million people in the US were collecting some form of unemployment benefit as of the middle of September. Last week, 1.4 million people applied for unemployment benefits.

Overall, just over half of the 22 million US jobs that were lost in March and April have now been recovered.

A new wave of layoffs is likely imminent as government stimulus measures are phased out. United Airlines and American airlines have announced that around 35,000 staff will be placed on indefinite furlough or cut altogether as federal aid runs dry, and The Walt Disney Company has stated that 28,000 jobs will be cut at its California and Florida theme parks.

About Finance Monthly

Universal Media logo
Finance Monthly is a comprehensive website tailored for individuals seeking insights into the world of consumer finance and money management. It offers news, commentary, and in-depth analysis on topics crucial to personal financial management and decision-making. Whether you're interested in budgeting, investing, or understanding market trends, Finance Monthly provides valuable information to help you navigate the financial aspects of everyday life.
© 2024 Finance Monthly - All Rights Reserved.
News Illustration

Get our free monthly FM email

Subscribe to Finance Monthly and Get the Latest Finance News, Opinion and Insight Direct to you every month.
chevron-right-circle linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram