We all know how CoronaVirus cases continue to rise in the U.S. and across the world. In fact, the employment numbers of the successive months are reflecting the adverse impact very well. As per the latest numbers that were released for the month of July, the employment situation is turning from bad to worse. Clearly, this is not pleasant news for the government and is going to be the most prominent Trump news for the days to come.
The ADP report for July shows that all the U.S. businesses together were able to add just 167,000 jobs, which was much lesser than what was being expected. In fact, many experts who understand the hiring industry very well had predicted more than 1 million jobs being added.
Then what went wrong? Are the government’s coronavirus steps not working? Is the federal aid to the industry not enough? What more does the government need to do, in order to bring the industry back on track? These are some of the questions that most Trump news are seeking answers to.
If anything, these numbers bring about a new sense of urgency to the congressional talks on the next round of coronavirus funding to the industry, which had been stalled off late.
No Sector Untouched
The impact of the pandemic on employee retention and new hiring spreads across the sectors and all kinds of industries. There is virtually no sector of the economy that has been left untouched by the endemic and the economic slowdown that has come with it. In fact, the virus has made no differentiation between small and big industries, with industries of all sizes seem to be facing the heat.
However, amongst all these depressing news of rising unemployment, there is some sunshine as well. ADP Research Institute, which released these numbers for the month of July recently, also revised their numbers for the month of June.
With this revision, the agency reported that the U.S. businesses added more than 4.3 million new jobs in June, as against the 2.3 million new jobs that the agency earlier reported having been added. This indicated that the numbers for July may also be revised to show a more realistic, and hopefully better picture.
Almost all of the job gains that were seen in the month of July came from the service providing industries like education, healthcare, leisure, and hospitality. This can be attributed to some of the coronavirus restrictions being relaxed in phases over this period. Meanwhile, jobs in the construction sector fell by over 8000.
As per the Trump news that we have, the government is expected to release some more robust employment numbers sometime soon, which may deviate from the figured reported by ADP.
Is Economic Recovery a Hoax?
While the ADP numbers indicate a gloomy picture, as per the Trump news, the President is busy trying to paint a better and deceptive image of the situation. Recently, President Trump suggested that the economy is actually recovering with some sectors snapping back quickly to perform very well. The housing market is being touted as one such recovering sector. In fact, the President has also referred to the stock market’s exceeding performance as an indicator of the economic health of the country.
However, the data still reflects that these minor economic improvements might just be deceptive. Further, these improvements seem to be diminishing in the light of the new surge in the country’s coronavirus cases that has been seen in the months of June and July.
This thought is also backed by the Federal Reserve Bank of St. Louis, which pointed out that the recent recovery in various employment sectors has now halted due to the coronavirus infections. It seems to be going out of control recently.
Even as we publish this article, an estimated 20 million to 30 million Americans continue to remain unemployed. If the situation continues to be the way it is, and businesses continue to keep their hiring suspended, the recovery will be much harder and delayed.
Next Coronavirus Economic Package?
As these numbers and multiple ground reports continue to be a major pain area, it is sad that Democrats and Republicans in the Congress are still indecisive on the size and scope of the next round of relief measures as part of the coronavirus relief package. If the sources are to be believed, there are major disagreements over the future of federal unemployment payments and relief to other cash-strapped workers, renters, businesses, and local governments. This battle is going to push the negotiations over the package by over a week.
The latest unemployment numbers should be enough to set the administration and the congress in motion. Clearly, there’s a lot more that needs to be done, and the next round of the coronavirus aid is required to be announced immediately.