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If Employment is Climbing, Why Are We Still Hungry?
While The US Bureau of Labor Statistics (BLS) on Thursday said the US added 4.8 million jobs in June, something still feels amiss. Yes, that exceeded the 3 million payroll additions expected by economists surveyed by Bloomberg, and it marks the second straight month of job additions as the economy tries to claw back from a coronavirus-induced recession. But, again, something feels amiss.
What could it be?
As many as 19 states and cities have paused or rolled back reopening efforts as they grapple with surges in COVID-19 cases. Economists and industry watchers will have to wait for the July report, due in August, to see the employment impact of these new coronavirus cases. Retail trade also added 740,000 jobs in the month, nearly double its gains in May. Education and health services, manufacturing, and professional and businesses services also added jobs in June. Still, employment in all sectors remains below February levels.
Just like in May, there’s more to the June numbers.
The June numbers come after May’s report shocked economists, showing 2.5 million job additions at a time when they were expecting a contraction of 7.5 million jobs. The unemployment rate also declined from the prior month, bucking forecasts for a historically high figure.
