Recovery has been a hard ride for most of the countries. The pandemic has crumbled the strongest economies. Domestic spending, employment rate, market trade has rapidly declined. As per experts, recovery may ask for a year or more till countries get back on previous numbers.
The United States has been experiencing a downfall, more than expected. The employment growth has slowed more than expected in September, with over 300,000 Americans losing their jobs permanently. With the existing political turmoil, this has stirred a debate essential for the presidential elections on 3rd November 2020.
As per the reports of The Labour Department, which closely watched the employment report on Friday, underscored an urgent need for additional fiscal stimulus to aid the economy’s recovery from a recession triggered by the COVID-19 pandemic, the need for the urgent stimulus calls the Trump administration to quickly look into the same as Trump announced overnight that he has tested positive for the Coronavirus.
Only half of the 22.2 million jobs lost during the pandemic have been re-occupied. Joe Biden, during the infamous Trump vs. Biden debate, pointed out how the Obama administration handed him a booming economy, and he, in a term, destroyed the same.
Apart from that, he also blamed Trump for the death of over 200,000 people as the White House’s handling of the pandemic was irresponsible.
Nonfarm payrolls increased by 661,000 jobs last month, the smallest gain since the jobs recovery started in May, after advancing 1.489 million in August. All the sectors in the country added jobs with the exception of the government, which shed 216,000 positions because of the departure of temporary workers hired for the Census and layoffs at state and local government education departments as many school districts shift to online learning.
Employment in the hospitality and leisure sector increased by 318,000, which fortunately accounts for at least half of the jobs lost. Payrolls are 10.7 million below their pre-pandemic level. Economists polled by Reuters had forecast 850,000 jobs were created in September. Employment growth peaked in June when payrolls jumped by a record 4.781 million jobs.
Economists who are looking at the multi-aspect effect of the pandemic stated that The unemployment rate fell to 7.9% in September as 695,000 people left the labor force from 8.4% in August. The jobless rate was again biased down by people misclassifying themselves as being “employed but absent from work.” Without this error in place, government reports state that the employment rate could have potentially risen to 8.3% in September.
The worrying sign of the slow labor market growth rate, Third-quarter gross domestic product growth estimates are topping a 32% annualized rate, which would reverse a historic 31.4% pace of contraction in the April-June quarter as the economic stimulus was pumped into the economy.
There has been a steep fall in the number of women in the labor force for which the Democratic-controlled House of Representatives on Thursday approved a $2.2 trillion rescue package as the COVID 19 pandemic has disproportionately affected the low-income group and women, who have dropped out of work to look at their children due to major safety concerns.
Surprisingly, due to the shortage of demand and huge supply as the unemployed workforce rises, people have worked a greater number of hours during the past few months, but the take home wages have declined.
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