US gains 4.8 million jobs in June, unemployment falls to 11.1pc

WASHINGTON: The US economy regained 4.8 million jobs in June as businesses began to reopen nationwide, while the unemployment rate fell more than two points to 11.1 percent, the Labor Department reported Thursday.

The job creation amid the coronavirus pandemic was far higher than economists were expecting, and showed the rapid pace of gains as people who were laid off returned to their jobs, especially in hard-hit sectors like leisure and hospitality, which accounted for just under half of the increase.

But as coronavirus cases surged later in June, especially in southern and western states, authorities have rolled back the reopening of their economies, forcing businesses to close again, which could jeopardize the latest job gains.

A separate Labor Department report showed job losses continued, as 1.43 million people filed initial claims for unemployment benefits last week, only slightly less than the prior week. Layoffs have averaged 1.5 million a week over the past four weeks.

But the monthly rebound in employment will be good news for President Donald Trump who needs a strong economy to help his reelection bid in November.

"These improvements in the labor market reflected the continued resumption of economic activity that had been curtailed in March and April due to the coronavirus (COVID-19) pandemic and efforts to contain it," the report said.

The data showed the number of people on temporary layoff dropped to 10.6 million, a decline of 4.8 million, while leisure and hospitality added 2.1 million workers in June.