The US economy increased 850,000 jobs during June, a figure that represents more jobs than experts expected at a time when the labor market is still far from recovering from the levels recorded before the COVID-19 pandemic. However, unemployment is still hitting the Latino and African-American communities the hardest.
The unemployment rate rose to 5.9%, from 5.8%, which somewhat signals a small sign as the recovery in the world’s largest economy is gathering momentum following the April and May results. President Joe Biden assured this Friday during a press conference that it is historic progress that is taking the US economy out of the worst crisis in the last 100 years.
Economists had expected an increase of about 700,000 jobs and a decrease of between 0.1 and 0.2 percent in the unemployment rate, as Americans are recovering some activities and have returned to traveling by air, staying in hotels, eating in restaurants, and go to movie theatres.
The Labour Department announced that 850,000 jobs were created in June alone, out of the 680,000 expected by labor market experts. The rise in the level of employment offers a sign that the job market recovery continues to be a work in progress. The pandemic transformed the professional activities of millions of workers while the economy still does not function normally.
The report released on Friday by the Labour Department provides a snapshot that indicates the economy could continue to be volatile. Economists agree that the inflation levels that are being registered in prices are a transitory effect; however, if employment gains are robust, this variable will experience sustained decreases.
There is an additional concern, and that is a possible rise in wages which will create inflationary pressure that could prompt Jerome Powell, the chairman of the Federal Reserve, and other members to review their massive bond purchase program.
The data shows that new jobs are being registered in the service sector, especially in entertainment and hospitality. In general, the increases were generalized, appearing in all sectors except information services, which decreased slightly.
Unemployment figures for the Latino and African-American working communities continue to be the most affected, registering an unemployment rate of 7.4% and 9.2%, respectively, compared to the rate of white people of 5.2% and that of Asians with 5.8%, according to the data presented by the Department of Labour.
There is still a shortage of 6.8 million jobs, but the vaccination campaign across the country is allowing more restaurants, cinemas, amusement parks, and other service businesses to open every day. At the moment, some unemployed people have decided to analyze in more detail any job before taking the offer, and those who already have one are looking to return to work from home.
Just over 25 states are about to withdraw the unemployment benefits granted by the federal government until September, which has forced thousands of workers to be now in the process of looking for work before the end of the weekly benefits of $ 300 federal dollars. A report by the Congressional Joint Economic Commission has noted that the anticipated cut in unemployment benefits could cost local economies more than $ 13 billion.