How Unemployment Insurance Abroad Compares To The U.S.
Jobs jumped 4.8 million in June and unemployment fell to 11.1% as the U.S. continues its planned recovery amid the fallout from the pandemic, the Labor Department said Thursday..
Economists polled by Dow Jones expected 2.9 million increase and 12.4% unemployment.
The aforementioned June figure turned out to be the largest monthly gain in US history..
Observers record positive movements in all states. However, since the government survey has been conducted since mid-month, it does not take into account the suspension or kickbacks in regions affected by the resumption of coronavirus cases..
The hotel business is recovering most intensively. The sector posted 2.1 million job growth, accounting for about 40% of the total growth.
Another major factor contributing to the decline in unemployment was the sharp decline in the number of temporarily laid off workers.. Their total number decreased by 4.8 million in June, amounting to 10.6 million.. Short-term unemployment dropped by 1 million to 2.8 million.
Jobs were equally balanced at 2.4 million for full-time and part-time employees. The retail sector is also seeing significant growth.
Unemployment headlines have been underreported by counting errors at the Bureau of Labor Statistics (BLS). Residents of a country who are listed in the state, but are sent on indefinite leave, are considered employed even if they meet all the criteria of the BLS.
However, the BLS stated that the discrepancy «decreased significantly» in June, making the actual unemployment rate just 1 percentage point higher than the reported.
Federal Reserve Chairman Jerome Powell this week acknowledged increased activity, stating that the economy «entered an important new phase, and did so earlier than expected». At the same time, Powell warned that the prospects are very uncertain and will depend on further success in containing the spread of the virus..
Economists have linked the surge in employment to the government’s payroll protection program, which gives businesses soft loans for wages. but these funds are gradually drying up.
In an economy that has already fallen into recession as of February, many companies, including those initially not particularly affected by the isolation regime, are still struggling with weak demand..
Industry experts note that this, coupled with the depletion of PPP loans, has sparked a new wave of layoffs that continue to keep weekly new jobless claims extremely high..