October 22, 2020

Unemployment in the United States falls to 11.1% due to the de-escalation in June, although it remains at historical levels




The United States unemployment rate has experienced a decrease of more than two percentage pointsin June, up to 11.1%, after the labor market registered its worst historical data in April, according to figures published Thursday by the labor statistics office of the US Department of Labor.

Despite the fact that the situation generated by the Covid-19 still did not completely fade in the sixth month of the year, the gradual opening of the economy led to the creation of 4.8 million jobs in June, after 2.7 million in May. In April, the pandemic suddenly destroyed 20.8 million jobs.

Despite the improvement of the last two months, lthe unemployment rate is still at record highs. In October 2009, the peak of the global financial crisis that started in 2008, the United States’ unemployment rate reached 10%, while the historical maximum until this year was in December 1982, when it reached 10.8%. Thus, the unemployment rate is still at unprecedented levels since records began in 1948.

The ‘shock’ of March and April has been so severe that the level of employed persons in June is still at a minimum since 2014. The worst month for employment after the 2008 crisis and before the coronavirus crisis occurred in March 2009, when 800,000 jobs were destroyed.

227,000 long-term unemployed more

The number of long-term unemployed, those who have been unemployed for a minimum of 27 weeks, se has risen to 1,391 million people, equivalent to an increase of 227,000 unemployed. Its weight with respect to the total number of unemployed has grown by more than two percentage points, to 7.9%.

On their side, the total number of unemployed people has been 17.75 million, so it fell by 3,235 million unemployed in June. For its part, the participation rate in the labor market grew by seven tenths, to 61.5%. Compared to May, the active population grew by 1.7 million people.

By groups of workers, the unemployment rate among women has dropped to 11.7%, almost three points less, while among men it fell to 10.6%, which is equivalent to one and a half percentage points less. Unemployment among young people has fallen to 23.2%, from 29.9% in May.

In the sixth month of the year, the number of employees in the tourism and leisure sector has increased by 2,088 million people, while the retail trade hired 739,800 people and the health sector hired 474,900 people.

2.8 million jobs destroyed in April

The length of the average work week has decreased by two tenths, until 34.5 hours in June. At the same time, median hourly earnings fell 35 cents from the previous month, to $ 29.37.

Likewise, the Department of Labor has reported that the number of jobs destroyed during the month of April has been revised upwards, up to 2.8 million people (100,000 more), while the May data has been adjusted to 2.7 million jobs created (90,000 more).


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