US jobs growth slows sharply in July

Andrew Cummings
August 7, 2020

The U.S. economy added almost 2 million jobs during July, the Labor Department said in its monthly report Friday.

There were 1.8 million jobs added in the month as the country continues to grapple with the effects of the coronavirus pandemic.

July's figure is well below the 7.5 million positions added in June and May, when the economy was showing signs of a solid rebound from the initial stages of the pandemic.

There were 41,913 continued weeks of regular unemployment claims last week, also a decrease from last week's 45,057.

"The 1,763,000 increase in non-farm payrolls in July confirms that the resurgence in new virus cases caused the economic recovery to slow, but also underlines that it has not yet gone into reverse", Andrew Hunter, senior USA economist at Capital Economics wrote in a note to clients. But the labour market still has a very long way to go to regain its pre-pandemic strength.

That would bring the monthly unemployment rate to 10.5% in July, from 11.1% in June. Despite three months of gains, employment in the sector is down by 2.6 million since February.

Black people faced the highest rates of unemployment in July, at 14.6%, with Hispanic people behind that at 12.9%.

While hundreds of thousands of Ohioans remain out of work, the state saw a drop in both new and continued unemployment claims in the latest weekly jobless data, according to the Ohio Department of Job and Family Services.

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