4.8 Million Jobs Added in June, but Clouds Grow Over Economy
Are much better than expected Report out today shows US economy, adding 4.8 million jobs in June Labor Department now reporting that unemployment also fell to 11% last month, but bankrate dot com economist Mark Hemorrhage says that number may actually be slightly higher. He joined debris. Debbie Feinstein live on Skype to explain 1/3 of the jobs that were lost among the 20 Two million of since been restored, which obviously means 2/3 yet to be. So we sell the high rate of unemployment in our country, and I had an asterisk to the 11.1% unemployment rate you mentioned. Their Labor department cautions us that because of problems with measurement that are ultimately fairly complicated, the actual unemployment rate is about another percentage point above that. So let's talk about 12%. That's 2% above the highest level we saw during the great recession over a decade ago and within certain sectors, for example, in leisure and hospitality, which is the category including bars and restaurants, the unemployment rate they're 29%. That's above the level of the great Depression, So we still have a lot of heartache to work through here. Also, we've gotta recognize that new shutdowns air now underway again because of the pandemic. This data and today's report is from the 1st 2 weeks in June before this latest round of shutdowns. What does this mean? Looking ahead to the next report? That means there's more risk associated with a weakness, or at least a stall in the data will get for the month of July. As you indicate this dad has always collected around the 12th of the month, so it is somewhat stale. At this point. That's why, in some cases It's been more optimal to look at new claims for unemployment benefits of there. We're down for a 13 straight week, but elevated above a 1,000,000 for 15 straight weeks. Do businesses feel okay about rehiring again now? Or is there still too much uncertainty? For example? What happens now? If people stopped traveling again? The answer? That is really about the answer having to do with where you're located. What sector you're operating in on what the business outlook is operating a restaurant which would be doing business under challenging, Sir. Come stances on the best of times because of the high failure rate thinking about being restricted at 30 or 50% of your traditional level of business. You're thinking you're walking on egg shells. But if you're in a service industry, perhaps technology I t working with the cloud collaborative tools of security, the many tools that have kept many of us in operation during the lock down, But do you think the outlook is pretty good, by the way? Mortgage interest rates or a record low levels that's helping the housing mark. And that's one reason why the financial services Trade really still has a remarkably low unemployment rate right now, and that is bankrate dot com economist Mark Hamrick.