By: Stefano Tromba Oct 05, 2020

How to Keep the Economic Recovery Effort Going

In what will be the last jobs report before the Nov. 3 election, we learned that the U.S. economy added 661,000 jobs in September. These numbers indicate the labor market’s recovery from the coronavirus pandemic may be leveling off as the second round of government stimulus relief seems more and more likely.

In the September report, we see the unemployment rate fell to 7.9% from 8.4%. Though still below the expected number predicted by economists, it’s important to note that any positive, upward motion is a good thing.

“These data are consistent with a labor market that is rebounding, albeit at a slower pace than a few months ago, which should be enough to support consumers and consumption,” said Sameer Samana, senior global market strategist at Wells Fargo. “While risks remain, such as election and COVID-19-related uncertainty, we believe investors should continue to remain fully invested.”

Markets, already lower after the news that President Trump and his wife contracted COVID-19, slid following the report, with all three major indexes down in the early afternoon.

On a Positive Note

Professional and business services increased by 89,000 and the transportation and warehousing sector grew by 74,000. Manufacturing added 66,000 and financial activities rose by 37,000.

Thought hardest hit by the pandemic, leisure, travel, and hospitality, again led in terms of job growth, with gains of 318,000. Retail added 142,000 workers, and health care and social assistance payrolls rose by 108,000.

Professional and business services increased by 89,000 and the transportation and warehousing sector grew by 74,000. Manufacturing added 66,000 and financial activities rose by 37,000.

On the flipside. job cuts within the theme parks and airlines continue into the thousands after federal COVID aid expired.

What’s to Come?

Democrats have pushed through a scaled-back stimulus package that seems unlikely to pass the Senate. However, talks are still ongoing as economists urge Congress to pass another round of emergency relief for workers and small businesses. This comes with the warning that without additional stimulus, this recovery could stall.

Category: Hiring | News | Other | Payroll | Small Business | Tax

Stefano is a seasoned marketing professional and writer with diverse industry experience. Born and raised in NYC, he holds a Journalism degree from Queens College, and is currently the Head of Marketing at Fingercheck.

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