President Donald Trump bragged about the “biggest monthly job gain in the history of our country” in a hastily organized public appearance after unemployment fell to 11.1%.
Trump called the numbers “spectacular news for American workers.”
The president came to the White House press room to brag about the economy for 15 minutes after U.S. employers added a whopping 4.8 million jobs in June, while the labor market improved for a second straight month. He took no questions from the media at an event that the White House organized a “press conference.”
But numbers still lagged far behind recovering the colossal losses the economy suffered this spring, and experts are warning that unemployment rates may rise again as coronavirus infections continue to rise.
President Donald Trump bragged about the ‘biggest monthly job gain in the history of our country’ in a hastily organized public appearance after the unemployment rate fell to 11.1%
Finance Minister Steve Mnuchin acknowledged that there is more work to be done. “Our work is not done. Our work will not be done until every American who has lost his job through COVID is back to work, “he said
President Donald Trump, with Director of National Economic Council Larry Kudlow (left) and Treasury Secretary Steven Mnuchin (right), released a 15-minute bragging statement on economic data, but took no questions from the press
Trump, however, remained positive.
“It’s coming back faster, bigger and better than we ever thought possible,” he said of the economy.
Polls show that voters give Trump high marks for his economic prowess, but give him low marks for his approach to the corona virus pandemic and race problems. The president has based his re-election campaign on his economic message.
And he was concerned about the increasing incidence of coronavirus as the country reopens. The United States reported 49,932 new cases of coronavirus on Wednesday, the fifth record of one day in eight days. Several states are seeing a record number of infections.
“Our health experts continue to address the temporary hotspots in certain cities and counties and we are working very hard on them,” said the president. “It has a life. And we turn that life off because we are talking about a bad life. ‘
And he ended his comments in an optimistic tone.
“Next year will be a historic year. Next year will be an incredible year for jobs and growth, ”he said. “Almost all of our large companies set records. So I want to thank everyone for being here today. These are historical figures at a time when many people would wither. And it is an honor to be president – thank you very much. ‘
The United States has now recovered about a third of the 22 million jobs it lost due to the pandemic recession.
Finance Minister Steve Mnuchin acknowledged the work that needed to be done.
“Our work is not done. Our work will not be done until every American who has lost his job through COVID is back to work, “he said in the White House.
Non-farm payrolls rose by 4.8 million jobs in June, the labor department’s meticulous monthly employment showed on Thursday. That was the highest number since the government started keeping records in 1939. In May, payrolls recovered 2,699 million.
Economists surveyed by Reuters had predicted that the payroll would increase by 3 million jobs in June.
And with confirmed cases of coronavirus flooding the Sun Belt states, a series of evidence suggests that a recovery in the labor market may stall. In those states and elsewhere, some restaurants, bars, and other stores that have reopened are forced to close again.
Due to the reclosures, layoffs remain high, with the number of Americans seeking unemployment benefits barely dropping to 1.47 million last week.
While that weekly figure has fallen steadily since its peak in late March, it is still more than double the pre-pandemic peak of 1982. The total number of people receiving unemployed aid remains at a sizeable 19 million.
Hunting for work: In Frankfort, Kentucky, the local state had to set up a temporary unemployment agency that was flooded in mid-June
California has re-closed bars, theaters, and indoor restaurants throughout most of the state. Florida has also closed bars and beaches again. Texas has reversed some of its efforts to reopen its economy. New York has interrupted its plans to dine indoors.
Credit and debit card data maintained by JPMorgan Chase shows that consumers cut their spending last week after steadily increasing in late April and May. The reversal has occurred both in states that have reported spikes in COVID-19 and in less affected states, said Jesse Edgerton, an economist at JP Morgan.
Nationally, card spending decreased by nearly 13% last week compared to a year ago. That’s worse than the week before, when card spending was down just under 10% year on year.
And Kronos, which produces time management software, has found that the number of services worked has slowed in the Southeast over the past two weeks and is now increasing by only half of the Northeast.
“The rate of recovery is starting to slow down,” said Dave Gilbertson, a manager at Kronos. “We expect to see more plateaus in the coming months.”
Thursday’s jobs report is based on data collected in the second week of June, which explains why the numbers reflect an improving trend. Last week’s plateau in shifts will instead impact July job numbers, which will be released in early August.
McDonald’s has paused reopening efforts across the country, and Apple says it will close another 30 of its US stores, in addition to the 47 it had closed for the second time.
Economists have long warned that if the virus is not brought under control, the economic benefits of reopening businesses would be short-lived.
Until most Americans are confident enough to eat out, travel, shop, or get together without fear of infection, restaurants, hotels, and retailers will not have enough customer demand to recruit all their previous employees. justify.
Nevertheless, some bright spots have emerged in the economy in recent weeks. Manufacturers grew in June after shrinking for three months, the Institute for Supply Management, a trading group, said Wednesday.
New orders are pouring in and factories are adding more jobs, the ISM said.
And record-low mortgage rates encourage more home buyers. Purchases of new homes rose sharply in May. And a measure of signed contracts to buy existing homes rose by a record amount, a sign that sales should recover after three consecutive months of decline.