America sees record job growth as the economy adds 4.8 million jobs and the unemployment rate drops to 11 percent
Fox Business Briefs: The job market shows signs of improvement as close to 5 million jobs added and a drop in the unemployment rate.
The U.S. economy added almost 5 million jobs in June as more businesses reopened from the coronavirus-induced lockdown and hired idled workers.
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Buoyed by the record-shattering figure, the nation's unemployment unexpectedly dropped to 11.1 percent from 13.3 percent in May. Over the course of the past month, every state has started to navigate reopening their economies.
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But the unemployment level, which is still at the highest level in decades, is expected to remain elevated for years to come, particularly as a resurgence in COVID-19 cases threatens to put the brakes on the economy's nascent recovery. New cases surpassed 50,000 twice in a row this week, reaching a new single-day record on Thursday.
"Today’s jobs report is a look in the rearview mirror," said Andrew Chamberlain, chief economist at Glassdoor. "With surging COVID-19 cases hitting new highs in the past week, rough waters are surely ahead for the economy in the coming months as a second wave could again shutter millions of American small businesses and put a freeze on hiring."
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Job losses are not proportional across the country. Some states have experienced a tidal wave of layoffs — in May, 43 states set record jobless rate highs — while the losses have been more tempered in other states.
The unemployment rate is highest in these 10 states, according to Department of Labor data released at the end of June:
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Nevada's economy was hit hard by the shuttering of its massive casino and tourism industries. The unemployment had actually ticked down slightly from 28.2 percent the prior month.
At the beginning of June, the state reopened casinos, restaurants and bars at a limited capacity. But after an increased number of COVID-19 cases, the state mandated that everyone in a public space must wear a mask and hit pause on moving into the next phase of reopening (which was slated to begin on June 30).
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