The Bureau of Labor Statistics (BLS) highlights the August jobs report today and both measures (Household Survey and Establishment survey) show a remarkable recovery underway from the COVID-19 crisis. Overall, 1.4 million jobs were recovered and the national unemployment rate drops to 8.4%.
Most economists did not predict the unemployment rate would drop into single digits until next year. However, the historically accurate household survey shows 3.8 million people recalled, returned or found jobs; with 2.8 million saying they were no longer unemployed.
Despite the ongoing challenges there is good news for the most heavily impacted sectors of the economy: leisure and hospitality. Well over half of those jobs lost have been recovered. In the past four months 3.6 million jobs have been gained in this sector. Employment in food services and drinking places is still down by down by 2.5 million since the peak in February but the gain is significant and reflects a “V-shaped” recovery ongoing.
All sectors of the economy are gaining jobs back at a remarkable rate; and the key demographics are benefiting in proportion to the initial COVID-19 impact. [BLS Report HERE] With the expiration of the “extra” federal unemployment benefits at the end of July, the negative incentive has been removed; more people are stepping back into the workforce.
“This was a strong report that shows the recovery remains on track,” said Joel Naroff of Naroff Economic Advisors. “The labor market has come back faster than expected and we are seeing improvement in all segments of the economy and the workforce.” (MSM Link)