US employment growth slowed considerably in July amid a resurgence in new coronavirus infections, offering the clearest evidence yet that the economy’s recovery from the recession caused by the pandemic was faltering.
UNEMPLOYMENT BENEFIT SUPPLEMENT EXPIRED LAST FRIDAY
The Labor Department’s closely watched employment report on Friday piles pressure on the White House and Congress to reach an agreement on another aid package. Talks have been dragging over differences on major issues including the size of a government benefit for tens of millions of unemployed workers.
A $600 weekly unemployment benefit supplement expired last Friday, while thousands of businesses have burned through loans offered by the government to help with wages.
“The jobs recovery is on very shaky ground and without seat belts for the unemployed provided by additional fiscal stimulus the economy could be in for a very bumpy ride,” said Chris Rupkey, chief economist at MUFG in New York. “There cannot be sustainable economic growth if the country has to carry on with the crushing weight of massive unemployment.”
The slowing labor market is more bad news for President Donald Trump, who is lagging in opinion polls behind former Vice President Joe Biden, the presumptive Democratic Party nominee for the Nov. 3 election.