The U.S. job market added 1.8 million jobs in the month of July, causing unemployment rates to fall an estimated 10.2% which is good news considering all of the events that have been taking place over the past few months. However, don’t get excited too soon because the full road to financial recovery after the COVID-19 pandemic is far from over.
July is the third straight month in which hiring has increased in the U.S., showing that the economy is slowly but surely rebounding from the deviation caused by the worldwide coronavirus outbreak. Even with these numbers, there still isn’t an account for half of the total number of jobs lost due to the pandemic.
What it means
In April, we saw an increase in employment by 15% which is currently the peak when compared to all other months in 2020 after the COVID-19 pandemic. This slow-down in economic recovery is largely due to more restrictions being placed on states that have experienced surgeries in coronavirus cases.
Wealthy families in the United States and around the world have been catalysts for economic recovery during the COVID-19 pandemic with notable names making large contributions to struggling small businesses. To help economic recovery, the United States has began imposing tariffs on countries like Canada for products such as aluminum.
While these numbers are promising for the average American, wall street investors are still in trouble due to tensions with China and other problems in Washington. The jump in employment numbers seen in July is still 4.8 million below the jump experienced in June, showing a slowing down of economic recovery.
Head of U.S. economics at Bank of America Michelle Meyer said the following: “The labor market continues to heal, which is encouraging, but there is a long road ahead.” She continued by saying: “In the very early stages of the recovery it’s easier to bring back workers quickly just to have a functioning operation.”
What to expect
All of these statistics show a true reflection of how the U.S. is still dealing with the coronavirus. Many workers who have been laid off as a result of the pandemic are still struggling to find permanent work which has led many to give up their search completely. The job market has a lot to figure out as many small business owners are still dealing with the brunt effects COVID-19 has caused to their profits.
While employment numbers are starting to stabilize themselves, there is still a large portion of business who are going through layoffs. With job instability, food shortages, and evictions on the rise, only time will tell how long if at all it takes for the U.S. economy to recover from this period of drought.
The unemployment rate does not show an accurate reflection of what’s going on at the ground roots level. One thing that this coronavirus pandemic has exposed is that regardless of how much money you were making in the past, anything can happen in life which would cause you to re-structure your entire financial plan.