US jobs recovery loses steam

Linda J. Dodson

The US recovery slowed sharply in July as a second wave of coronavirus triggered the weakest month for jobs growth since Covid first struck.

The world’s biggest economy added just 1.8m jobs last month, payroll figures show – less than half the 4.8m rise in June. It is the clearest sign yet of a faltering bounceback after infections surged in the South and West.

America’s jobless rate fell to 10.2pc from 11.1pc, but the latest data showed an extra 10.6m Americans are unemployed compared to before the pandemic.

It poses a fresh challenge to President Donald Trump’s bid for re-election in November, and will pile pressure on Democrats and the White House to agree another emergency support package for households after a $600 (£460) benefit top-up for claimants expired last month.

Seema Shah, chief strategist at Principal Global Investors, said the jobs market was static in July.

She added: “With Congress failing to agree on a new fiscal stimulus package yet, the risk is that a policy failure drains the tentative strength that had been creeping back into the economy in recent months. With the unemployment rate still sitting above 10pc, the pressure in Congress is still on.”

Source Article

Next Post

America’s biggest companies fear being locked out of China after Trump WeChat ban

WeChat, and its Chinese equivalent Weixin, have a combined 1 billion users, but have long been criticised for censoring posts and messages in China and for submitting to demands for information about users from the Chinese state. Neil Campling, head of TMT at Mirabaud Securities, said: “US companies will be […]