Virus still a threat to V-shaped US re­cov­ery de­spite record jobs lift

The Daily Telegraph - Business - - Front Page - By

Rus­sell Lynch

AMER­I­CAN em­ploy­ers hired a record 4.8m work­ers in June as the coun­try’s econ­omy bounces back – but ex­perts have warned this stel­lar re­cov­ery could be stopped in its tracks by surg­ing coro­n­avirus cases.

The world’s big­gest econ­omy shed more than 20m jobs in April at the height of the lock­down, but the US has now re­gained a third of those work­ers in just two months af­ter 2.7m jobs were added in May – sug­gest­ing it has be­gun a rapid “V-shaped” re­cov­ery.

Pres­i­dent Don­ald Trump said the fig­ures were “spec­tac­u­lar news for Amer­i­can work­ers and Amer­i­can fam­i­lies”, but they came as the US passed 50,000 daily in­fec­tions for the first time.

The surge in cases in­cludes 10,000 in a sin­gle day in Florida and has prompted more than 20 states to pause re­open­ing and reim­pose some re­stric­tions, fu­elling fears over the sus­tain­abil­ity of the jobs fight­back.

David Page, head of re­search at Axa In­vest­ment Man­age­ment, said that more than half of the US’s job gains in June came from re­open­ing re­tail, leisure and hos­pi­tal­ity in­dus­tries.

He said: “It is likely that job growth in these sec­tors slows next month and could even re­verse in some ar­eas. This is the real threat to the US re­cov­ery.”

The June job cre­ation fig­ures were higher than the 3.2m ex­pected by econ­o­mists and the big­gest in­crease since records be­gan in 1993.

They bring Amer­ica’s un­em­ploy­ment rate down to 11.1pc, still well above the 50-year low of 3.5pc ear­lier in 2020.

Newspapers in English

Newspapers from UK

© PressReader. All rights reserved.