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US unemployment rate falls to 8.4% even as hiring slows

AP / Sep 04, 2020, 22.53 PM IST

The U.S. unemployment rate fell sharply in August to 8.4% from 10.2% even as hiring slowed, with employers adding the fewest jobs since the pandemic began. Employers added 1.4 million jobs, the Labor Department said, down from 1.7 million in July. The U.S. economy has recovered about half the 22 million jobs lost to the pandemic. Friday's report added to evidence that nearly six months after the coronavirus paralyzed the country, the economy is mounting only a fitful recovery. From small businesses to hotels, restaurants, airlines and entertainment venues, a wide spectrum of companies are struggling to survive the loss of customers with confirmed viral cases still high. Many economists think significant hiring may be hard to sustain because employers are operating under a cloud of uncertainty about the virus. Daily confirmed case counts have fallen from 70,000 in June to about 40,000. Friday's jobs data was the second-to-last employment report — for most voters, the most visible barometer of the economy — before Election Day, Nov. 3. President Donald Trump faces the daunting task of seeking re-election in the worst economic downturn since the 1930s. The jobs report coincides with growing signs that more companies are making permanent job cuts rather than temporary furloughs. That trend could keep the unemployment rate persistently high. It is typically harder for an unemployed worker to find a new job at a new company or in a new industry than to return to a previous employer.

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