Read on Twitter
Today, six months into the recession, when the labor market has seen the sharpest employment declines in our lifetimes, we will get the latest jobs data and learn about how workers are faring. It will confirm what we already know: continuing economic pain. https://www.epi.org/blog/what-to-watch-on-jobs-day-widespread-economic-pain-continues-in-august/
Today, the BLS reports an increase of 1.4 million jobs in August. In normal times, this would be an enormous jump, but it represents a noted slowdown in the pace of job growth. At this point, the U.S. economy is still down 11.5 million jobs from where it was in February.
In August, the economy is still down 11.5 million jobs from where it was in February (11.8 million if you remove the temporary Census jobs). With this kind of slowing job growth we've seen over the last couple months, it will take years to return to the pre-pandemic labor market.
It may be difficult to see the forest for the trees in today's report, but without the $600 boost to unemployment insurance, jobs will return even more slowly than had policymakers stepped up and continued that vital support to workers and the economy. https://www.epi.org/blog/cutting-off-the-600-boost-to-unemployment-benefits-would-be-both-cruel-and-bad-economics-new-personal-income-data-show-just-how-steep-the-coming-fiscal-cliff-will-be/
State and local public sector employment is still 1.1 million below its pre-pandemic level in February. Federal policymakers need to step up and provide relief so they can continue to provide necessary services and prevent unnecessary cuts. https://www.epi.org/blog/state-and-local-governments-have-lost-1-5-million-jobs-since-february-federal-aid-to-states-and-localities-is-necessary-for-a-strong-economic-recovery/
Job growth occurred in retail trade, profession and business services, and leisure and hospitality, but the economy is still facing a huge job deficit in leisure and hospitality (-4.1m), education and health services (-1.5m), prof and bus services (1.5m). https://twitter.com/hshierholz/status/1301866609275936768
In August, the unemployment rate fell from 10.2% down to 8.4%. This happened for the “right” reasons—more workers getting jobs rather than an exodus from the labor force. However, at 8.4%, it is still higher than it ever got in the early 1990s or the early 2000s recessions.
After continuing to falter as white workers recovered faster, Black unemployment finally has started improving. Black men's unemployment remains the most elevated at 13.2% compared to 6.9% for white men. Latina workers saw the biggest spike in April, but continue to see progress.
This spring, the jobs losses were sharp and deep, disproportionately hitting women, Latinx workers, and certain low wage sectors of the economy, notably leisure and hospitality. https://www.epi.org/publication/latinx-workers-covid/
While gains--however small--are welcome, the effects of the pandemic labor market are particularly devastating for Black workers and their families who are less able to weather job losses and will likely be feeling the fallout for years to come. https://www.epi.org/publication/black-workers-covid/
The official unemployment rate is not counting all coronavirus-related job losses. If those misclassified as employed or left the labor force were included, the unemployment rate would have been 11.5% in August. @hshierholz breaks down the numbers here: https://twitter.com/hshierholz/status/1301865432664530947
