The national economy added 943,000 jobs in July, building on the 938,000 jobs in June and lowering the unemployment rate by 0.5 percentage points, to 5.4 percent, reducing the number of officially unemployed people to 8.7 million.
The number of under-employed people and those too discouraged to be part of the workforce is higher, putting that more accurate unemployment and under-employment rate at 9.2 percent, according to the labor department. That percentage includes 6.5 million people who have dropped out of the labor force and had not actively looked for work in the last four weeks, but are still of workforce age.
The 9.2 percent unemployment and under-employment figure also includes 4.5 million workers still working part-time only because they could not find full-time work, or because their hours were cut back. Those are called the involuntary part-time workers, as opposed to the 20 million who are working part-time by choice. Either way, the unemployment rate reflects the number of workers who have put in as much as one hour of paid work in the previous four weeks.
While improving, the figures nevertheless remain well below pre-Covid days, when the unemployment rate the last month before the pandemic struck was 3.5 percent, with just 5.7 million people officially unemployed. There are still 5.7 million jobs to make up to return to the employment level of February 2020, and that return does not account for the new entrants into the economy since–an economy that needs to absorb about 150,000 new entrants every month.
The improving figures also mostly predate the explosion of the delta variant of covid, which has been sweeping through southern states, Florida especially. Earlier this week the Commerce Department announced that the economy grew at an annualized rate of 6.5 percent, two points below expectations of a consensus of economists. The figure was slightly up from 6.3 percent in the first quarter (annualized). Personal spending powered the increase, but personal savings have dropped alarmingly, to just under $2 trillion, from $4.1 trillion in the first quarter. For perspective, the economy had dropped 31.4 percent in the second quarter of 2020.
Job gains in July were powered by the leisure and hospitality industry–the hardest-hit sector during the pandemic–with an increase of 380,000 jobs, especially in restaurants and bars. There remains a 1.7 million job deficit in the industry, compared to February 2020. Local governments also added 221,000 jobs, powered by additions in public education, in addition to 40,000 jobs in private education. Professional and business services added 60,000 jobs, transportation and warehousing added 50,000, health care added 37,000. Despite the pandemic, health care is short 502,000 jobs from its pre-covid levels, as home health care workers and nursing home workers have yet to regain their previous levels. Manufacturing added 27,000 jobs, information and financial activities also added 46,000 jobs between them.
Average hourly earnings increased 11 cents, to $30.54.
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Mike Cocchiola says
You go Joe! The economy’s healthy and expanding (a little inflation is actually good!).
Seems all of this socialism is working.
B Martin says
if the economy is going so good why did Joe extend the eviction moratorium? the CDC, trump and biden are responsible for this blatant attack on individuals private property seizure. yes that is how socialism is working in the US today. the vast majority of money allocated to help fund this socialism has not been spent and put in the hands of the landlords or tenants. who do I go to to get my property back. I have continued to pay property tax and insurance while not receiving a dime from the renters for over twelve months now. will I ever get back pay I seriously doubt it. so Mike you tell me how “this socialism is working” for you- it sucks for me and others like me.
Mike Cocchiola says
Well, that’s how democratic socialism works. The greatest good for the most people. You may suffer a bit in the short term but think of all of those families that get to keep a roof over their heads.
Besides, State and local programs are distributing billions of dollars in rental assistance to help renters stay housed during the pandemic and help landlords make ends meet. If you haven’t done so, you should apply. If denied, go to your State representative (Paul Renner) or U.S. representative (Michael Waltz). It’s their job to help you.
mausborn says
The people got it right in the Nov 2020 Presidential election.
Biden is doing a fantastic job!! The infrastructure legislation will produce millions more jobs, and the auto-EV initiative, and clean energy jobs will put us in even better shape. Fastest GDP growth in US HISTORY for any president.
You’ll notice the only people here who are upset over this are the republicans.
Obviously Biden looks good compared to Dump”s economy which had the second worst GDP growth in history. And thats before Covid also. Republicans are scrambling to spin this as something bad or trying to credit Trump, god what a loser he is. SPACE LASERS!
Makeitso1701 says
Thank you President Joe Biden!!!!!!!!
Just Me says
Take away “enhanced” unemployment, and look what happens…
James says
This is the reason the country is in such a mess, these peoples comments on here are insane! Unbelievable how gullible people are , keep drinking biden koolaid, until china comes knocking at your door people.
Makeitso1701 says
The only insane are the trump cult followers that had been drinking the “koolaid”, and still are, while trump occupied the white house, because that’s all he did, occupied it. He did nothing good for this country, he did though and still is lying to his brainwashed followers that he won the election. trump is raising a lot of money from the BIG LIE He is going to need it, to try to keep his ass out of prison.