Unemployment drops to 7.9% but hiring slows
WASHINGTON » The U.S. unemployment rate dropped to 7.9% in September, but hiring is slowing and many Americans have given up looking for work, the government said Friday in the final jobs report before the voters decide whether to give President Donald Trump another term.
With a month to go before Election Day, the Labor Department said employers added just 661,000 jobs in September amid the coronavirus outbreak, down from 1.5 million in August and 1.8 million in July.
Unemployment fell from 8.4% in August, but that mainly reflected a decline in the number of people seekingwork, rather than a surge inhiring. The government doesn’t count people as unemployed if they aren’t actively looking for a job.
“There seems to beaworrisome loss of momentum,”
said Drew Matus, an economist atmetlife Investment Management. “There’s a lot of caution on the part of employers.”
With September’s hiring gain, the economy has
recovered slightly more than half the 22 million jobs wiped out by the coronavirus, which has now killed over 200,000 Americans and infected more than 7 million. With many
businesses and customers plagued by fear and uncertainty, some economists say it could take as long as late 2023 for the jobmarket fully recover.
This week, moreover, brought a new wave of layoff announcements reflecting the continuing slump in travel and tourism: Disney is cutting 28,000 jobs, Allstate will shed 3,800, and U. S. airlines said as many as 40,000 employees are losing their jobs thismonth as federal aid to the industry expires.
In another problematic sign in Friday’s report, the number of laid- off workers who say their jobs are gone for good rose from 3.4 million to 3.8 million.
While unemployment has tumbled from April, whenit topped out at 14.7%, a rate unseen since the Depression in the 1930s, it is still high by historical standards. And it is a far cry from where it was in February, before the outbreak took hold in the United States: 3.5%, a more than 50-year low.
Friday’s numbers offered voters a final look at themost important barometer of the economy before the Nov. 3 presidential election — an election whose outcome was thrown into deeper uncertainty by the announcement Friday that Trump has tested positive for the coronavirus.
Still-high unemployment is a potential political liability for Trump. Yet President Barack Obama was reelected in 2012 even with unemployment at 7.8% on the eve of the election.
And even as the economy has struggled to sustain a recovery, it has remained one of the few bright spots in Trump’s otherwiseweak political standing. Roughly half of voters approve of his performance on the economy.
The economy is under pressure on a number of fronts, including the expiration of federal aid programs that had fueled rehiring and sustained the economy — from a $600-aweek benefit for the unemployed to $500 billion in forgivable short-term loans to small businesses.