Business_news US economy beats forecasts, adds 1.8 million jobs in July as unemployment rate declines to 10%

Business_news

  • The US Bureau of Labor Statistics on Friday said the US added 1.8 million jobs in June. That exceeded the 1.5 million payroll additions expected by economists surveyed by Bloomberg.
  • The report marks the third straight month of job gains since the US saw record payroll losses in April amid fallout from the coronavirus pandemic.
  • The BLS also said the US unemployment rate was 10.2% in July, down from 11.1% in June.
  • Visit business Insider’s homepage for more stories.

The US economy added jobs for a third straight month in July the nation attempts to reopen and claw back from the devastating coronavirus recession.

American businesses added 1.8 million nonfarm payrolls during the month, according to theBureau of Labor Statistics. That exceeded the 1.5 million payroll additionsexpected by economistssurveyed by Bloomberg.

The US unemployment rate came in at 10.2%, the BLS said, lower than the 10.6% expected by economists. It was also down from 11.1% in May. April’s 14.7% reading was the highest since the Great Depression of the 1930s.

Read more:MORGAN STANLEY: The Government’s recession response has the stock market heading for a massive upheaval. Here’s your best strategy to capitalize on the shift.

The data comes amid a crucial time as the US tries to recover from the damage caused by the virus, which triggered the worst recession since the Great Depression. Recent spikes in coronavirus cases have forced some states to pause or roll back their reopening plans, threatening a swift recovery.

Throughout July, a number of indicators flashed warning signs that the economic recovery had lost momentum. High-frequency indicators such as data from Homebase — a scheduling app used by small businesses — and the Dallas Fed Mobility index, showed less growth in the number of people returning to work and participating in economic activity.

US consumer sentiment slippedas new COVID-19 cases spiked, and the Household Pulse Survey showed that employment fell by 4.1 million between July 9 and 14, the reference week for the monthly jobs report. Weekly initial jobless claims increased for two weeks in a row in July, snapping an extended period of declines from the end of March. 

This is a breaking news story. Check back for updates. 

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