Thursday, July 02, 2020
The report clearly showed evidence of continued improvement related to the reopening of many parts of the economy following the shutdowns precipitated by the virus. The survey of employers showed payrolls were up by 4.8 million, and the job gains were in industries that were hardest hit by the pandemic, including leisure and hospitality and health services, which includes doctors' and dentists' offices. There is clear evidence that firms are hiring. The unemployment rate declined, for the second month, and the labor force participation rate " the share of adults working or looking for work " rose by seven-tenths of a percentage point. These are all consistent with the economy gradually reopening in the middle of June.
But we shouldn't extrapolate from these trends because some states have scaled back their reopening because of the uptick in coronvavirus cases. The job market was improving in June, but it was still in very rough shape.
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