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  4. 5 charts from July's jobs report highlighting the US economy's post-pandemic recovery — and 3 showing how much further it has to go

5 charts from July's jobs report highlighting the US economy's post-pandemic recovery — and 3 showing how much further it has to go

5 charts from July's jobs report highlighting the US economy's post-pandemic recovery — and 3 showing how much further it has to go
Stock Market2 min read
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  • The July jobs report released Friday beat economist expectations, showing that US employers added 1.8 million nonfarm payrolls during the month, and that the unemployment rate ticked down to 10.2%
  • The gains were a positive sign that the economic recovery from the coronavirus pandemic recession has continued, even as the US grapples with new COVID-19 cases and shutdowns.
  • Still, the pace of the recovery has slowed, signaling that there may be much longer to go before reaching pre-coronavirus levels of employment.
  • Here are five charts from the July report showing how much progress the recovery from the pandemic recession has made, and three more showing how much further it has to go.

The July jobs report, released by the Bureau of Labor Statistics on Friday, beat economist expectations and showed the recovery from the coronavirus pandemic-induced recession is continuing.

US employers added 1.8 million jobs in July, more than the 1.5 million economists forecast. And, the unemployment rate ticked down to 10.2% from 11.1% in June.

But while the headline numbers were positive, underlying data in the report show just how far the economic recovery has to go. The unemployment rate is still higher than at any point during the Great Recession, and total employment is still 12.9 million below its February level, an 8.4% slump, according to the report.

In addition, the pace of job growth slowed in July from previous months, signaling that the recovery from the pandemic recession may take longer than previously hoped.

"The recall of workers to their jobs slowed in July as evidence of a much greater problem in the domestic labor force mounts," said Joseph Brusuelas, chief economist at RSM, in a Friday note. "We take no comfort from this data given the move sideways in the U.S. economy since mid-June, and we are confident that the further recall of workers back to the labor force will fizzle in the August report."

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The report comes at a crucial time for the US economic recovery. After a few early months of what looked like a swift recovery, signs of pressure started to show in July as new COVID-19 cases spiked, forcing some states to pause or reverse reopening plans.

In addition, leaders in Washington are currently deadlocked in debate over the next stimulus package. Democrats want to extend the additional $600 weekly unemployment benefit, which expired at the end of July, while Republicans want to lower the amount to out of work Americans.

"A case of fiscal fatigue at this juncture will create the conditions for another possible downturn given the downward direction of the data over the past two months," said Brusuelas.

Here are five charts from the July report showing how much progress the recovery from the pandemic recession has made, and three more showing how much further it has to go.

1. US employers added more jobs than economists expected in July

2. Most industries added jobs in July, with the most payrolls gained in leisure and hospitality

3. The unemployment rate declined to 10.2% from 11.1% in June

4. Underemployment, a broader measure of labor market weakness, also ticked down during July

5. Permanent job losers were about the same as a month before, a good sign

6. The labor force participation rate was roughly the same as June, showing that people are not rejoining the workforce

7. The gap between white unemployment and Black unemployment reached its widest point of the pandemic so far

8. Even with all of the jobs added, employment remains 12.9 million below its February level

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