The final job report before the November polls was released on Friday, October 2, 2020. The U.S economy has slowly been recovering from the impacts of the pandemic. However, the recovery process has been slow due to the continued presence of the coronavirus. The September Labour Department report will give us a hint of how far we’re with the recovery process and where we’re headed.
The September Report
Job growth since the reopening of the U.S economy slowed down almost immediately after the reopening. However, the report indicates that job growth slowed further in September. This could be attributed to the fading relief from the government and failure to contain the pandemic which poses a major threat to cut short the once-promising recovery of the economy.
According to the Labour Department report, employers provided a total of 661,000 jobs in September. The September figure is down from 1.5 million recorded in August, and further below 4.8 million jobs brought back in June. The rate of unemployment fell by 7.9%, mainly because about 700,000 Americans left the labour force.
Among the sectors that led to job gains include leisure and hospitality, retail, healthcare, and social assistance. On the other hand, the government led those lost most jobs due to a drop in both local and state government education as learning became virtual.
However, big employers such as Disney, Allstate, and two other major Airlines recently announced their plans to lay off thousands of employees citing lack of government aid.
The drop in the unemployment rate was sharper for the African-Americans, which dropped from 13% to 12.1%, while the Asian rate dropped from 14.2%.
Moreover, the report shows that personal income dropped in August, while consumer spending recorded a slow increase as government unemployment benefits came to an end.
What could help
Economists argue that the fiscal stimulus being negotiated by the government agents (Treasury Secretary and House Speaker) could significantly help the economy and the job market.
Clearly, there is a need for another stimulus package. Without another round of stimulus package, the economy will weaken further, and the significance of the previous government efforts could be washed away. The government needs to develop policies that will protect the economy and the sources of employment opportunities for Americans. The government needs to step up its efforts in protecting the economy and the American jobs now more than ever.
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Disclaimer: The views and opinions of Eric Lawrence Frazier are his own and do not necessarily represent First Bank or any organization affiliated with Eric Lawrence Frazier, or the Power Is Now Media Inc. First Bank is an Equal Credit Opportunity Lender. Eric Lawrence Frazier, MBA, is also a Vice President and Mortgage Advisor with First Bank. NMLS#461807 and a California Licensed Real Estate Broker DRE# 01143482. Email: Eric.email@example.com. Ph: 714- 475-8629.
Eric Lawrence Frazier MBA
President and CEO
The Power Is Now Media Inc.