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America ready to go to work

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America ready to go to work

By
Timothy Doescher

[Ed. Note: Doescher is associate director of coalition relations at The Heritage Foundation’s Institute for Economic Freedom.]

Expert predictions were shattered again, as the Bureau of Labor Statistics reported that the economy added 4.8 million jobs and the unemployment rate fell by 2.2 percentage points to 11.1%.

The new jobs report suggests that Americans are eager to return to work, after many were temporarily unemployed due to an effort to contain the COVID-19 pandemic.

After this report, we have now added more jobs in the past two months than we did in the 46 months following the height of unemployment during the Great Recession.

While these numbers are strong, there is a lot of work still to be done in order to bring the sectors that lost significant jobs back to full strength.

Here are the sectors where we are seeing the biggest changes:

Leisure and Hospitality: +2.1 million jobs (compared to +1.2 million in May and -7.7 million in April)

Construction: +158,000 jobs (compared to +464,000 jobs in May and -975,000 in April)

Education and health services: +568,000 jobs (compared to +424,000 jobs in May, and -2.5 million in April)

Retail trade: +740,000 jobs (compared to +368,000 jobs in May and -2.1 million in April)

Manufacturing: +356,000 jobs (Compared to +225,000 jobs in May and -1.3 million in April)

Professional and business services: +306,000 jobs (Compared to +127,000 jobs in May and -2.1 million in April)

Transportation and warehousing: +99,000 jobs (Compared to -19,000 jobs in May and -584,000 in April)

The number of people temporarily laid off decreased by 4.8 million in June to 10.6 million, which follows a decline of 2.7 million in May. This continues to show that job losses due to COVID-19 are intended to come back, once it is safe to open.

However, not all of the jobs that were lost are coming back. The report shows that while many job losses were temporary, permanent job loss increased by 588,000 to 2.9 million.

The civilian non-institutional population in the United States was 260,204,000 in June. This includes all people 16 and older who did not live in a prison, nursing home, or long-term care facility.

Of this population, 159,932,000 participated in the labor force, which means they either had a job or were actively seeking one during the last month. This resulted in a labor force participation rate of 61.5%, up from 60.8% in May.

The U-6 unemployment rate – which measures both the unemployed who are looking actively for a job and those who are unemployed but not actively seeking work—dipped from 21.2% in May to 18%.

It is expected that we will see a spike in employment as the economy reopens. The key is to make sure we set ourselves up for full recovery, but also lay a groundwork that allows us to grow even stronger.