Edition: International | Greek
MENU

Home » World

US unemployment rate drops to 8.4%, labour market rebounds further

US employers added 1.4 million jobs in August, sending the unemployment rate back below the peak of the global financial crisis to 8.4%

By: N. Peter Kramer - Posted: Wednesday, September 9, 2020

‘While there is a bit of a slowdown in hiring, once you strip out the census numbers, this is still a positive surprise’.
‘While there is a bit of a slowdown in hiring, once you strip out the census numbers, this is still a positive surprise’.

by N. Peter Kramer

US employers added 1.4 million jobs in August, sending the unemployment rate back below the peak of the global financial crisis to 8.4% . Also the labour market rebound advanced in the world’s largest economy. Businesses last month continued to rehire workers they shed during the pandemic, albeit at a weaker pace than in July, according the US Bureau of Labor Statistics. This monthly release of the US labour department has a clear political significance, it is the penultimate reading on the labour market before the presidential election in November.

Retail added 249.000 jobs; the manufacturing sector 29.000; leisure and hospitality 174.000; healthcare and education 147.000. The government jobs rose 344.000 on the back of the consensus-related hiring. There is a slowdown in hiring after July, a month that showed a peak in hiring. Interesting is now to see how it the labour market develops after the holiday month of August. Overall, the US economy has regained about 10.6 million of the 22.2 jobs lost during March and April.

The rebound has been held back by the fading effects of the enormous fiscal stimulus. But Congressional leaders and the White House are already talking about a new round of fiscal stimulus, which economists believe is crucial for a further recovery of the economy. A difficult time for talks like this, especially for the Democrats. They know that further positive developments will give, in the first place, a boost to President Donald Trump.

Anyhow, American economists are positive. ‘While there is a bit of a slowdown in hiring, once you strip out the census numbers, this is still a positive surprise’, the chief economist of Fitch Ratings called it. His colleague at Ameriprise said, ‘this does show incremental improvement’.

READ ALSO

EU Actually

Joe Biden and his catnip effect on the EU

N. Peter KramerBy: N. Peter Kramer

‘It is a new beginning for the EU-US global partnership’, tweeted (yes, she does too) Ursula von der Leyen, President of the European Commission, after she had a phone call with US President-elect Joe Biden

View 03/2020 2020 Digital edition

Magazine

Current Issue

03/2020 2020

View past issues
Subscribe
Advertise
Digital edition

Europe

Can the EU Solve the Budget and Rule-of-Law Crisis?

Can the EU Solve the Budget and Rule-of-Law Crisis?

Hungary and Poland have vetoed the next EU budget in protest of a new rule-of-law conditionality. What instruments and treaties can Europe use to circumvent Budapest and Warsaw’s hostage-taking?

Business

How secure is your data? 3 predictions and 3 protections in the age of hybrid work

How secure is your data? 3 predictions and 3 protections in the age of hybrid work

Covid-19 introduced a paradigm shift in working culture. The new era of the “hybrid employee” has required a recalibration of how organizations provide secure, productive and digitally enabled environments for their employees

MARKET INDICES

Powered by Investing.com
All contents © Copyright EMG Strategic Consulting Ltd. 1997-2020. All Rights Reserved   |   Home Page  |   Disclaimer  |   Website by Theratron