US adds 4.8 million jobs as unemployment falls to 11.1%

The United States economy added 4.8 million jobs in June, up from 2.5 million in May.

News 12 Staff

Jul 2, 2020, 9:49 AM

Updated 1,388 days ago

Share:

U.S. employers added a substantial 4.8 million jobs in June, and the unemployment rate fell to 11.1%, as the job market improved for a second straight month yet still remained far short of regaining the colossal losses it suffered this spring.
 
The nation has now recovered roughly one-third of the 22 million jobs it lost to the pandemic recession. And with confirmed coronavirus cases spiking across the Sun Belt states, a range of evidence suggests that a job market recovery may be stalling. In those states and elsewhere, some restaurants, bars and other retailers that had re-opened are being forced to close again.
undefined

 
The re-closings are keeping layoffs elevated: The number of Americans who sought unemployment benefits barely fell last week to 1.47 million. Though that weekly figure has declined steadily since peaking in late March, it's still more than double the pre-pandemic peak set in 1982. And the total number of people receiving jobless aid remains at a sizable 19 million.
 
California has re-closed bars, theaters and indoor restaurant dining across most of the state. Florida has also re-closed bars and beaches. Texas has reversed some of its efforts to reopen its economy. New York has paused its plans to allow indoor dining.
VIDEO: See how a popular Islip restaurant has fared during the pandemic:

 
Credit and debit card data tracked by JPMorgan Chase show that consumers reduced their spending last week after having increased it steadily in late April and May. The reversal has occurred both in states that have reported surges in COVID-19 and in less affected states, said Jesse Edgerton, an economist at J.P. Morgan.
 
Nationwide, card spending fell nearly 13% last week compared with a year ago. That’s worse than the previous week, when year-over-year card spending had fallen just under 10%.
 
And Kronos, which produces time management software, has found that in the past two weeks, growth in the number of shifts worked has slowed in the Southeast and is now rising at just half the rate of the Northeast.
 
“The pace of recovery is starting to slow,” said Dave Gilbertson, an executive at Kronos. “We are expecting to see more of a plateauing over the next couple of months.”
 
Thursday’s jobs report is based on data gathered in the second week of June, which helps explain why the figures reflect an improving trend. Last week’s plateau in work shifts will instead affect the July jobs figures, to be released in early August.
 
McDonald’s has paused its reopening efforts nationwide, and Apple says it will re-close 30 more of its U.S. stores, on top of 47 that it had already shut down for a second time.
 
Economists have long warned that the economic benefits of allowing businesses to reopen would prove short-lived if the virus wasn’t brought under control. Until most Americans feel confident enough to dine out, travel, shop or congregate in groups without fear of infection, restaurants, hotels and retailers will lack enough customer demand to justify rehiring all their previous workers.
 
Still, some bright spots in the economy have emerged in recent weeks. Manufacturers expanded in June after three months of shrinking, the Institute for Supply Management, a trade group, said Wednesday. New orders are flowing in, and factories are adding more jobs, the ISM said.
 
And record-low mortgage rates are encouraging more home buyers. Purchases of new homes rose sharply in May. And a measure of signed contracts to buy existing homes soared by a record amount, a sign that sales should rebound after falling for three straight months.
Sportset in Rockville Centre had to furlough over 100 staff members when the pandemic hit. With the Paycheck Protection Program, it was able to bring back employees, but with different job descriptions as they try to prepare for reopening.
Some have become movers, relocating machines for social distancing. Others have been part of tech support for virtual classes or builders to add a second story for equipment in the aerobic room.
Sportset workers say they are ready to welcome back clients, including using contactless temperature check machines, glass panels around their welcome booth and more.


More from News 12
1:56
Authorities: Nassau County police officer attacked by 2 men, pit bull in East Rockaway

Authorities: Nassau County police officer attacked by 2 men, pit bull in East Rockaway

1:19
Sunny start before cloudy Sunday afternoon for Long Island

Sunny start before cloudy Sunday afternoon for Long Island

0:36
Southampton police: Man arrested in Riverside machete attack that injured 24-year-old

Southampton police: Man arrested in Riverside machete attack that injured 24-year-old

1:10
Lawmakers in Albany pass $237 billion state budget, restore school funding

Lawmakers in Albany pass $237 billion state budget, restore school funding

0:28
Man who set himself on fire outside Trump trial dies of injuries, police say

Man who set himself on fire outside Trump trial dies of injuries, police say

Knicks beat 76ers 111-104 in Game 1 of playoffs. Brunson and Hart score 22 points and backups star

Knicks beat 76ers 111-104 in Game 1 of playoffs. Brunson and Hart score 22 points and backups star

Andersen, Noesen help Hurricanes push past Islanders 3-1 to open 1st-round NHL playoff series

Andersen, Noesen help Hurricanes push past Islanders 3-1 to open 1st-round NHL playoff series

0:42
'A Dream Prom Boutique' ensures Nassau high schoolers have prom of their dreams

'A Dream Prom Boutique' ensures Nassau high schoolers have prom of their dreams

0:43
Huntington’s Blue Line Deli & Bagels gives away free bagels to customers ahead of Islanders postseason

Huntington’s Blue Line Deli & Bagels gives away free bagels to customers ahead of Islanders postseason

0:18
Car crashes into back of oil truck in Long Beach

Car crashes into back of oil truck in Long Beach

0:19
Authorities: RV catches fire at park in Shirley

Authorities: RV catches fire at park in Shirley

0:28
Police: Levittown woman arrested for driving drunk with 2 children in vehicle

Police: Levittown woman arrested for driving drunk with 2 children in vehicle

1:13
CDC: Children ER visits increased last 3 years for accidental Melatonin ingestion

CDC: Children ER visits increased last 3 years for accidental Melatonin ingestion

2:05
Long Island native ID’d as person who set himself on fire outside Trump trial in Manhattan

Long Island native ID’d as person who set himself on fire outside Trump trial in Manhattan

0:37
Officials: Wildlife rehabilitator took raccoons into her Merrick home without required rabies license

Officials: Wildlife rehabilitator took raccoons into her Merrick home without required rabies license

1:42
FBI on alert as Jewish Long Islanders prepare to celebrate Passover

FBI on alert as Jewish Long Islanders prepare to celebrate Passover

0:35
Tesla recalling nearly 4,000 Cybertrucks because accelerator pedal can get stuck

Tesla recalling nearly 4,000 Cybertrucks because accelerator pedal can get stuck

1:46
Alleged Gilgo Beach serial killer’s defense attorney demands information on other ‘top suspect’

Alleged Gilgo Beach serial killer’s defense attorney demands information on other ‘top suspect’

Is your mom awesome? Long Island tell us why your Mom Rocks!

Is your mom awesome? Long Island tell us why your Mom Rocks!

Show off your team spirit! Share your photos with News 12

Show off your team spirit! Share your photos with News 12