Washington : US hiring slowed in July as the coronavirus outbreak worsened, and the government's jobs report offered signs Friday that the economic damage from the pandemic could last far longer than many observers originally envisioned.
The United States added 1.8 million jobs in July, a pullback from the previous two months. At any other time, hiring at that level would be seen as a blowout gain. But after employers shed a staggering 22 million jobs in March and April, much larger increases are needed to heal the job market. The hiring of the past three months has recovered 42% of the jobs lost to the pandemic-induced recession, according to the Labor Department's report.
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- Former US Treasury Secretary Larry Summers warns economy is in grave danger
- Freelance job rush means everyone could get paid less in US
- Global economies, companies hit hard as virus cases top 17 million
- June jump in US jobs does not reveal how far the economy is away from recovery
- Some US jobs are coming back, but economy will need years to heal
- US unemployment rate falls for a second month, now at 11.1%
Though the unemployment rate fell last month from 11.1% to 10.2%, that level still exceeds the highest rate during the 2008-2009 Great Recession.
Roughly half the job gains were in the industries hit hardest by the virus: restaurants, retail shops, bars, hotels and entertainment venues such as casinos. Those jobs have been relatively quick to return after the broadest shutdowns ended in May and June.
But economists worry that the next leg of job growth will be harder to achieve, particularly as the virus dampens confidence, leaving much of the country only partially reopened, most travel on hold and millions of employees working from home. The number of people unemployed for longer than 15 weeks jumped in July to more than 6 million, a sign many of the unemployed will have to find work at new companies or even in new occupations, a potentially lengthy process.
Constance Hunter, chief economist at accounting firm KPMG, noted that many jobs in hotels, sports stadiums and the travel industry probably will not return until a vaccine is developed.
``When are you going to be comfortable again being in an air-conditioned room with 400 people?'' she asked. ``There are whole parts of the economy that will remain unemployed until we have a much tighter control of this virus.''
The jobs report emerged as new infections run at about 55,000 a day. While that's down from a peak of well over 70,000 in the second half of July, cases are rising in about half of the states, and deaths are climbing in many of them.
In addition to the rising number of longer-term unemployed, the proportion of Americans who are either working or looking for work slipped last month to 61.4%, down 2 percentage points from February. That suggests that many out of work see little prospect of finding a job.
And the number of Americans who say their job losses are permanent was flat last month despite the rise in hiring.
Friday's report suggested that high unemployment and shriveled incomes for many households will remain an issue through the November elections and a potential threat to President Donald Trump's reelection prospects.
Trump quickly celebrated the report with a pair of tweets, including one that read ``Great Jobs Numbers!'' But aides are nervous that the recovery is still fragile. The president remained out of sight Friday, beginning a three-day weekend at his Bedminster, New Jersey, golf club.