US economy dented its second straight month of job additions in June, bringing the unemployment rate to 11.1 percent and roundly defeating economist expectations.
US economy Jump back: Watch the Latest Updates
American businesses added 4.8 million released Thursday by the Bureau of Labor Statistics one day early, in deference to the July Fourth holiday. The unemployment rate declined more than expected to 11.1%. Revisions to April and May left employment 90k better than previously.
Labor force participation improved to 61.5%. Wages are up 5% year-on-year. It indicates a labor market that is slowly recovering from the destructive effects of the coronavirus pandemic.
Economy is still a long way from back to normal
Although the number of jobs added is enormous by any historical measure, the US economy is still a long way from back to normal, said Dan North, senior economist at Euler Hermes North America. “It still is only chipping away at the 22 million or so jobs we lost,” he said.
More than 10 million part-time workers would have preferred full-time work in May, more than double the number in February, before the virus struck. People who do not search for new jobs are not counted as unemployed.
Including involuntary part-time workers and those who are not looking for a job, the so-called underemployment rate was 21.2 percent in May, far above the official unemployment figure but down from a record 22.8 percent in April.
Unemployment rates From April to June
The government revealed another 5.2 million people had lost their jobs in April, taking the total to apply for unemployment benefits in the earlier month to 22 million. It’s slightly down from last week’s of April as 6.6 million and means that almost all the jobs created since the financial crisis ended have lost in the previous month of April.
3.2 million Americans filed new petitions for unemployment benefits in May. More than 33 million Americans have filed new unemployment claims over the earlier seven weeks. The report showed California processed the most significant number of applications at 318,064, according to preliminary state-level estimates that have not seasonally adjusted.
The unemployment rate fell to 11.1 per cent in June. Economists had forecast payrolls to rise by 3.23 million; the median in a range of 500,000 to 9 million and an unemployment rate of 12.5 per cent.
Trump recognized the June jobs report as a sign that his administration is doing a grand job i US economy. He also cheered the recent recovery in the stock market and even claimed that shares would fall to ‘nothing’ with the wrong president in charge.