Worker recalls help lower jobless rate

WASHINGTON — U.S. unemployment dropped sharply in August from 10.2% to a still-high 8.4%, with about half the 22 million jobs lost to the coronavirus outbreak recovered so far, the government said Friday in one of the last major economic reports before Election Day.

Employers added 1.4 million jobs last month, down from 1.7 million in July and the fewest since hiring resumed in May. And an increasingly large share of Americans reported that their jobs are gone for good, according to the Labor Department report.

Altogether, that was seen by economists as evidence that the recovery is going to be slow and uneven.

“The fact that employment is settling into a trend of slower, grinding growth is worrisome for the broader recovery,” said Lydia Boussour, an economist at

Oxford Economics.

Still, President Donald Trump, who is seeking reelection in less than two months amid the worst economic downturn since the Depression in the 1930s, celebrated the report, tweeting, “Great Jobs Numbers!” and adding that unemployment fell below 10% “faster and deeper than thought possible.”

The drop was sharper than most economists expected and mainly reflected what they said were businesses recalling workers who had been temporarily laid off, rather than expanding with new employees.

Private companies added just over 1 million jobs in August, with the government providing nearly 350,000 others, including a quarter-million temporary census workers. The fall in private hiring from 1.5 million jobs in July was seen as a sign that employers remain cautious with the virus still out of control.

Friday’s figures were the secondto-last employment report before the presidential election Nov. 3. For most voters, the employment report is the most visible measure of the economy.

Richard Moody, chief economist at Regions Financial, noted that about half the private-sector job gains were in retail, a category that includes restaurants, hotels and casinos, and health care. All have benefited from the reopening of most states’ economies.

“When the reopening effect wears off, the overall job gains in coming months should be considerably smaller,” he said.

Retailers added 250,000 jobs, and restaurants, hotels and entertainment firms gained 174,000. Health care added 90,000. But manufacturers, which are enjoying a jump in demand, particularly for cars, added just 29,000 jobs, one-tenth of their job growth in June. Construction added just 16,000 despite strong home building.