Carlton Neel, CEO of Chaikin Analytics, a quantitative investment research firm based in Philadelphia, told IBT that there were solid job gains again in August as states reopened their economies and business improved.
"A closer look at today's report reveals a tale of two Americas: Furloughed workers being recalled are seeing almost all of the employment gains as permanent job losses continue to rise", said Rep. Richard Neal, D-Massachusetts, chairman of the tax-writing House Ways and Means Committee, in a statement.
Employment increased by 1.4 million in August, the U.S. Bureau of Labor Statistics reported Friday, as the unemployment rate fell to 8.4 percent from 10.2 percent in July amid signs of economic recovery despite the ongoing COVD-19 pandemic, although the number of accounting and bookkeeping jobs declined last month by 1,600.
Despite the challenging outlook, Donald Trump hailed Friday's report and latest unemployment rate as "much better than expected".
The Labor Department will issue the August jobs report at 8:30 a.m. That's the first time the unemployment rate has fallen below 10 percent since the pandemic started.
"The fact that employment is settling into a trend of slower, grinding growth is worrisome for the broader recovery", said Lydia Boussour, an economist at Oxford Economics. The economy still has roughly 13 million fewer jobs than it did when the coronavirus struck in March.More news: Mackenzie Scott Became the World's Richest Woman
The disparity between comparatively weak hiring and a steep drop in unemployment reflects how the government compiles its monthly jobs report. Yet voters in surveys have generally given him higher marks on the economy than they have on other aspects of his presidency.
Some of those furloughs, however, are becoming permanent.
"We are still moving in the right direction and the pace of the jobs recovery seems to have picked up, but it still looks like it will take a while - and likely a vaccine - before we get back close to where we were at the beginning of this year", said Tony Bedikian, head of global markets at Citizens Bank, according to Fox Business. Coca Cola, which derives half its sales from stadiums, theaters and other venues that have been largely shut down, is offering buyouts to 4,000 employees.
In August, the number of white Americans with jobs rose by 3.1 million, or 2.8%.
The number of permanent job losses, as opposed to furloughs and temporary cuts, have increased by 534,000 to 3.4 million, a figure that has risen by 2.1 million since February, signalling a longer-term economic recovery and damage felt among workers.
The hit from the pandemic continues to skew to the more disadvantaged groups in the labor market.More news: Covid-19: Five new cases, total in NZ now 116
Stocks on Wall Street were lower as technology shares slumped.
With the $600 payments expired and congressional negotiations at a stalemate, Trump in early August announced an additional $300 a week in federal jobless benefits for most unemployment insurance recipients.
One outcome is that rising stress and anxiety are evident at therapists' offices and mental health hotlines around the country.
The outbreak is blamed for about 187,000 deaths and nearly 6.2 million confirmed infections in the USA, by far the highest totals in the world.
For its household survey, it asks households whether the adults living there have a job.More news: Cirstea upsets 9th seed Konta in US Open second round marathon