US adds 4.8 million new jobs, unemployment rate falls to 11%

'Our economy is roaring back,' says Trump, after jobs report shows massive economy growth, following record decline during lockdowns.

David Rosenberg ,

Donald Trump on July 2nd 2020
Donald Trump on July 2nd 2020
REUTERS

The US economy added 4.8 million new jobs during the month of June, according to a report released by the Labor Department Thursday, beating projections by a wide margin.

Experts had predicted that the economy would add as many as three million – or as few as one million – new jobs in June, after 2.7 million new jobs were created in May, while some predicted the job market could actually suffer a second decline, following the massive jobs losses caused by the coronavirus lockdowns in late March and April.

The unemployment rate fell to 11.1% in June, the report said, with a large number of workers laid off during the lockdowns being able to return to their jobs last month. The US unemployment rate peaked at 14.7% in April.

President Donald Trump touted the report, tell reporters Thursday that the US economy “is roaring back.”

“Today’s announcement proves that our economy is roaring back. It’s coming back extremely strong.”

Despite the strong growth in June, other indicators painted a more mixed picture of the economy. The number of weekly initial unemployment claims remains high, with 1.43 million new claims filed during the week ending on June 25th. That’s down slightly from the 1.48 million claims filed the week before.

While the number of new jobs exceeded economists’ predictions, the number of weekly initial unemployment claims also exceeded predictions, with experts expecting just 1.38 million claims.

The number of American workers who permanently lost their jobs rose in June by 588,000, to 2.8 million since the pandemic began.




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