Non-farm payrolls: 1.4m more Americans back in work in August
A further 1.4m people entered employment in the US in August as the unemployment rate fell from 10.2 per cent to 8.4 per cent.
The increase was marginally above economist predictions of a 1.35m rise.
However, the figure was down on July’s increase of 1.7m amid fears the US’ economic recovery from the coronavirus pandemic was stalling.
The gains took the number of people on non-farm payrolls back to the same levels as in August 2014.
The new figures come with lawmakers still at loggerheads over a new coronavirus stimulus package to boost the flagging economy.
Programmes to support businesses, including those helping them to pay wages, are on the verge of expiry, while a $600 unemployment hand-out expired in July.
Yesterday it was revealed that a further 881,000 people had filed for unemployment benefits last week, 130,000 fewer than in the prior week.
However, the number of people in freelance or non-permanent work who applied for state credit increased again.
There are still some 13m people out of employment in the US, down from 22m at the height of the pandemic.
Sectors such as hospitality, retail and travel have been especially badly hit. United Airlines yesterday announced that it would cut 16,000 jobs starting from October.
Robert Alster, chief information officer at Close Brothers, said that the outlook for US jobs remained “in the balance”.
“As the US continues to battle the pandemic, public health policy is the real test for Washington. Congress remains at an impasse on a fresh round of in and out-of-work support.
“There are 27m people currently receiving assistance, and the recovery in the labour market looks like it is beginning to stall. With an election around the corner, neither party can risk an electoral backlash.
“The Fed is keen to avoid smothering such a fragile recovery, but the outlook for US employment remains finely in the balance.”