United States created 4.8 million jobs in June, but recovery threatened by pandemic

Donald Trump's visit to a Ford automobile factory in Ypsilanti, Michigan, May 21, 2020.

The economic recovery accelerated in June in the United States, the country which created last month 4.8 million jobs. It’s better than the 2.5 million in May, which caused the surprise and was even revised upwards (2.7 million). In fact, the unemployment rate fell to 11% in June, after hitting a high of 14.7% in April, according to highly anticipated figures released Thursday July 2 by the federal labor ministry. Immediately Donald Trump called a press conference at the White House to welcome a hike "Historic" while the US stock market opened up 1.5% on the final day before the long Independence Day weekend.

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If these figures show a strong rebound, higher than expected, the damage caused by the Covid-19 is far from being erased. America is a third of the way: with 142 million jobs in June, it has recreated 8.8 million jobs since the lowest hit in April, but it is still 15 million jobs below the level of February. The unemployment rate, which had reached historic lows in the late 1960s, has tripled.

Catering and tourism

Above all, the investigation by the Ministry of Labor was carried out in mid-June. Its good figure does not take into account the jobs probably lost for ten days, while many states hit by the Covid-19 epidemic, such as Texas, California, Arizona and Florida, had to close their economy that they had too quickly deconfigured. The number of new cases exceeded 50,000 for the first time Wednesday 1er July.

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As in May, employment was recreated, notably in catering and tourism in the broad sense, which after having lost half of its workforce gradually reopens its doors (2.1 million jobs created in June), but still shows a 30% drop in jobs.

The rebound is clear in the manufacturing industry, which has recovered half of the ground lost (500,000 jobs recreated in June, a reduction reduced to 6% of the workforce). This segment is politically very important for the November election: in 2016 workers elected Donald Trump in the so-called "rust belt" states. However, the worst is yet to come for the airlines, which claim to have 20,000 extra employees.

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The debate on unemployment figures is disrupted by electoral issues, critics of Donald Trump ill accept that a good macroeconomic figure can be published while Congress support for the economy, unprecedented and massive ($ 2.7 trillion , or 13 percentage points of GDP), goes against the prejudices about American non-interventionism.

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