Photo by Artem Beliaikin on Unsplash Production of boiler chickens (those raised for their meat, not eggs) in the US...
1.4 Million Jobs Added in August
Over 20 million jobs have been lost since the coronavirus pandemic began to impact the United States in early March. In March, a record 6.9 million people filed for unemployment assistance, the highest number of unemployment claims ever recorded in United States history. As our economy continues to recover, the U.S. Department of Labor Statistics released the August labor market data. In August 2020, 1.4 million jobs were added, down from 1.7 million in July and reflecting the lightest job gains since May. The unemployment rate has dropped to 8.4%, a strong decline from about 15% in April 2020. Though this is a significant increase in employment, the 1.4 million jobs added is substantially lower than the 4 million jobs added in June 2020. The recent resurgence in coronavirus cases has halted the re-openings of several industries all over the nation. Thus, the anticipated gains in employment were much lower than originally expected.
Glassdoor’s senior economist, Daniel Zhao, stated that “we are seeing evidence that the economic recovery is losing steam. It’s not reversing, but it looks like growth is flattening out.” Economists and industry experts are worried that the labor market will not obtain the sustained gains needed to return our economy to its pre-pandemic state. The U.S. Department of Labor Statistics states that the number of people unemployed fell by 2.8 million, to 13.6 million unemployed.
August’s report noted that the largest group to return to work last month were employed within government. This influx of government workers is largely attributed to temporary Census 2020 workers. The pandemic has greatly impacted retail, leisure, hospitality, and trade sectors. These industry sectors saw notable employment gains in August 2020. On September 3rd, Forbes reported that further large-scale furloughs and layoffs can be expected in the airline and car manufacturing industry (particularly by United Airlines, American Airlines, and Ford Motor Companies). Despite the continued drop in the unemployment rate, the recovery has still a long way to go.
Questions/Discussions
- Congress is negotiating a second stimulus packages. List three items you think must be included and/or addressed in the second stimulus packages. Include any communities/subgroups you feel were under-served in the first stimulus package.
- Discuss the impact of prolonged unemployment on our economy. Include your thoughts on how prolonged unemployment impacts households as it relates to healthcare and overall financial stability.
Sources: Forbes: “U.S. Added 1.4 Million Jobs In August And Unemployment Fell To 8.4%”; U.S. Department of Labor, Bureau of Labor Statistics report from September 4, 2020
