After two consecutive months of record-setting job gains, surprising economists along the way, July delivered a third consecutive month of huge job gains. As nice as that would be anyway, it also confirms a trend and what will likely have proven to be the most pivotal month of the year and during the pandemic for our economy.
On back of re-opening efforts around the country during May and June, cases spiked to their highest levels in the three biggest states in the country. California, Texas, and of course right here in Florida. As we’re aware reopenings turned into new restrictions in all of these states with some businesses forced to close once again. This would be a true test of whether the job gains from the prior to months had run their course or whether American free enterprise would be able to overcome an only somewhat free environment with which to operate. Thankfully the answer was yes, and perseverance prevailed.
As I do monthly, let's break down the facts starting with the real unemployment rate. First, the headline numbers:
- Unemployment rate 10.2% (Improvement of .9%)
- +1.8 million jobs
- Positive revisions from previous months totaling 17,000 additional jobs
Industries for biggest jobs recoveries:
- #1 Leisure and Hospitality
- #2 Government
- #3 Retail
It didn’t stop with those industries. Also noteworthy are the 26,000 manufacturing jobs added during the month. The real unemployment rate once underemployed, long-term unemployed, and marginally attached people are accounted for is actually 16.8%, an improvement of 1.2% over July. Some key takeaways include the continued room for optimism and the possibility of a rapid recovery for much of the economy. Also, the bottom of the recession is confirmed to have been in April and those unaccounted for in the base unemployment rate include 16.1 million Americans who are among the long-term unemployed, underemployed and marginally attached to the workforce.
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