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U.S unemployment rate slumps 8.4 percent amid Census hiring

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The United States’ Bureau of Labor Statistics has said that the U.S’ unemployment rate slumped to 8.4 per cent.

US employers added 1.4 million jobs in August, sending the unemployment rate down below the peak of the great recession.

Analysts said  the labour market rebound advanced in the world’s largest economy, according to details of data released by the statistics bureau.

On Friday, data released by the Bureau of Labor Statistics showed that businesses continued to rehire some of the workers they shed during the pandemic, although at a weaker pace than in July.

Data showed that the US has recovered slightly less than half the jobs lost at the start of the coronavirus crisis.

The new figures showed a drop in the unemployment rate to 8.4 per cent, putting it well below the 10 per cent seen in the aftermath of the financial crisis.

The new report also showed the labour force had increased by 968,000, reversing a small decline in July, meaning more Americans were working or seeking work within the period under review.

In July, the labour force participation rate jumped from 61.4 to 61.7 per cent.

Speaking in an interview with NPR, Jay Powell, the Federal Reserve chairman, said the employment data report was good but the economy would take a long time to fully recover from the effect of the pandemic.

“We think that the economy’s going to need low interest rates, which support economic activity, for an extended period of time,” Mr Powell said.

“It will be measured in years.”

 

Sector by Sector details

The data showed that Leisure and hospitality recovered 174,000 jobs, slower than the 621,000 jobs created in July. However, new jobs in healthcare and education fell from 222,000 to 147,000 last month.

Retailing added 249,000 positions, a small increase from the previous month while the manufacturing sector brought back 29,000 jobs after adding 41,000 positions in July, and government jobs rose by 344,000 on the back of the census-related hiring.

In all, the US economy has regained about 10.6m of the 22.2m jobs lost during March and April, but the rebound has been held back by new infection surges in many states in recent months, and weak stimulus plan.

 

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