US Economy Unexpectedly Adds 2.5M Payrolls, Unemployment Falls.
Ben Compton September 3, 2020 Job Markets 0
Article Starts Here:
Good news indeed and like everybody else we were caught (pleasantly) off guard with it. We were very busy today in talks with Department of Labor Economists and feel it’s important to also note the following:
- We have still only recovered 15% of those layoffs that were considered “temporary”. While any gain is a move in the right direction, 15% means we still have a long way to go.
- Bureau of Labor Statistics has long been stating (but hasn’t received much press) that the unemployment rate has been understated because of a hefty amount of worker miss-classification. When adjusted to reflect something more accurate, the BLS has an estimate that the May UI rate is actually closer to 16.3%. Yes, this is MUCH better than the adjusted 19.7% in April we must remember that 16% unemployment means 21 million workers are still without jobs.
- Some other numbers:
6 million of left the workforce
6 million more are working part-time after losing their full-time jobs
The bottom line: YES… any move in the right direction is great. But the labor market is coming online very slowly and the demand still vastly outpaces this recovery. We are still seeing jobs being permanently destroyed every day.
View Source – Yahoo Finance