The US Economy Added 1.4 Million Jobs

The US Economy Added 1.4 Million Jobs

over 3 years ago2 mins

Our congratulations to the US, whose ongoing efforts to induce labor were a resounding success last month: its economy welcomed a bouncing 1.4 million jobs into the world 👶

What does this mean?

The US jobs market kept its eye on the prize in August, with even more businesses bringing back even more laid-off workers. That brings the overall unemployment rate – which fell by a higher-than-expected 2 percentage points – down to 8.4%, lower than the peak rate of the recession that followed the 2008 financial crisis.

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But the US still has a lot of work to do: there are 11 million more unemployed Americans than there were before the coronavirus outbreak 🦠 And with a whole host of major companies like American Airlines, United Airlines, and Bed Bath & Beyond recently announcing big job cuts, it might be a while before things go back to the way they used to be.

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Why should I care?

The US economy as a whole might be recovering from pandemic-induced shutdowns, but the treasury secretary reckons certain parts of it – like the services and travel industries, along with small businesses – urgently need a boost in the form of Congress-approved stimulus measures 💵 Don’t hold your breath, Mr. Secretary: negotiations haven’t moved an inch since the last round broke up in deadlock almost a month ago.

A healthy labor market is one thing, but the health of the US stock market is a different story entirely. Tech stocks – which have powered the US stock market to record highs recently – suffered a nasty setback last week, and the tech-dominated Nasdaq 100 stock market index fell 5% on Thursday 📉 Fortunately, some analysts actually think that’s a good thing for the overall market: tech stocks’ valuations were starting to look pretty lofty and were arguably overdue for a pullback.

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