- The unemployment rate fell by nearly 1% point to 10.2%
- People are returning to low wage jobs at restaurants and retailers in major cities
- Many companies are having reduced their workforce by nearly 15%
An end to the key relief program
The employment growth in the United States has declined considerably in July encompassing increasing cases of viral infections.
The employment report released on Friday by the Labour department has put another pressure on the White House and Congress to come up with another deal after the $600 weekly unemployment benefit supplement expired last Friday.
Companies are levelling off their labour force
Several companies sustained a complicated period by securing loans from the government. Although companies like Amazon, Amazon Inc., Alphabet Inc, Ford Motor Co., and D.R. Horton Inc, hired a number of employees, a lot of industries are preparing to dismiss a proportion of their workforce. American Airline Group said that 25,000 jobs are at risk when aid expires and the United Airlines Group Inc. said it would lay off one-third of its pilots.
White House economic advisor continued to call the economic recovery ‘V-shaped’. He said that the executive orders by the Trump administration will set up certain priorities which include cutting off the payroll tax and eviction moratorium.
No straight curve close at hand
According to the data released by the Labour Department on Friday, about 1.76 million jobs were added in July by the employers. This is nearly 300,000 more than the economists’ anticipations. nonfarm payrolls rose by 1.763 million jobs last month after a record 4.791 million in June. The overall rates of employment are almost triple that of the pre-crisis level.
With no vaccine yet in sight, situations are trembling in the States. Millions of people have lost their jobs amid the Coronavirus. Almost 8 million of the total 16.3 million unemployed individuals had been out of work for more than 15 weeks, since the pandemic lead-off.