US unemployment rate falls to 8.4% even as hiring slows
The US unemployment rate fell sharply in August to 8.4% from 10.2% even as hiring slowed, with employers adding the fewest jobs since the pandemic began.
Employers added 1.4 million jobs, the Labor Department said Friday, down from 1.7 million in July. The US economy has recovered about half the 22 million jobs lost to the pandemic.
Friday’s report from the Labor Department added to evidence that nearly six months after the coronavirus paralyzed the country, the economy is mounting only a fitful recovery. From small businesses to hotels, restaurants, airlines and entertainment venues, a wide spectrum of companies are struggling to survive the loss of customers with confirmed viral cases still high.
After an epic collapse in the spring, when the economy shrank at a roughly 30% annual rate, growth has been rebounding as states have reopened at least parts of their economies. Yet the recovery remains far from complete.
Many economists think significant hiring may be hard to sustain because employers are operating under a cloud of uncertainty about the virus. Daily confirmed case counts have fallen from 70,000 in June to about 40,000. The decline has leveled off in the past week and the viral caseload remains higher than it was in May and June.
As a result activities like restaurant dining and air travel are still far below pre-pandemic levels. Most economists say a meaningful economic recovery will likely be impossible until the coronavirus is brought under control, most likely from the widespread use of a vaccine.
UK home secretary Priti Patel has reportedly conveyed Prime Minister Boris Johnson the “general view” of Conservative lawmakers amid efforts to force him out of office. "Home Secretary Priti Patel, told Johnson that the general view of the Conservative party was that he had to go," CNN reported citing a person familiar with the matter.
In separate amendments to the National Defence Authorization Act, three US Congressmen have proposed that the US deepen defence ties with India, waive off sanctions that may be triggered by India's acquisitions of Russian weapons under the Countering America's Adversaries Through Sanctions Act (CAATSA), enhance the energy partnership with India, and work to reduce Indian dependence on Russian military equipment and energy sources and replace it with the US sources.
British prime minister Boris Johnson - holding on to power precariously after multiple members oJohnson'sis cabinet resigned over the past few days - has become the subject of memes among the online community. A slew of these memes have surfaced on Twitter, encapsulating the current political crisis in Britain as Johnson stares at the strong possibility of being removed as Conservative Party leader and PM.
The China-backed Asian Infrastructure Investment Bank on Thursday announced the opening of its first office outside its Beijing headquarter, in what appears to be an effort to negotiate China's Covid-19-related policies including restrictions on international travel and strict quarantine requirements for returnees. “The AIIB Board of Directors has approved the establishment of an Interim Operational Hub (the Hub), the bank's first overseas office,” the multilateral lender said in a statement on Thursday.
South Asian communities may have suffered more during the Covid-19 pandemic than the general population, according to an indicative study published in Canada. Researchers from McMaster University in Hamilton, Ontario, “found the Regional Municipality of Peel, home to a large South Asian Canadian community, emerged as a Covid-19 hotspot before the local rollout of vaccines starting in April 2021”. The city of Brampton was the “epicentre”.