The rate of unemployment in the US fallen sharply in August, due to the hiring of new staff.
According to BBC, the temporary hiring for the US census also boosted job numbers.
So far, unemployment has fallen below 10% for the first time since the pandemic began, because firms added 1.4 million new jobs.
More so, it is the fourth month in a row that America’s jobs picture has improved, as the economy begins to rebound from the depths of the coronavirus recession.
Interestingly, despite these changes, unemployment rate is still much higher than it was in February.
The unemployment rate peaked at 14.7% in April, when many US states issued stay at home orders.
Meanwhile, there are fears that the recovery in the labour market is not sustainable as the pace of jobs growth is slowing.
On small businesses, the stimulus payments and help for small businesses have been exhausted. And negotiations between the White House and Congress over more stimulus remain stalled.
Some comments were made by the senior economic adviser at Federated Hermes, Neil Williams. He said the unemployment figures were becoming ‘”less awful” as furloughed workers return.
“But, even if jobs continue to be clawed back at this pace, it would take another nine months for the 12 million workers displaced since February to return.
“The ‘under-employment’ rate, which includes those not searching, but wanting to work or work more, still over 14%, may be even slower to fall. And as we know from 2007-09, rapid job losses do not guarantee the sharpest recoveries.”
