Record Nonfarm Payroll Reading Boosts US Economic Outlook

Nonfarm payroll figures released by the US Bureau of Labor Statistics have shown the country added 4.8 million jobs over June, significantly higher than the 3 million predicted and an increase from the unexpected spike in May. It represents the biggest monthly increase in history as more businesses reopen after the nation-wide lockdown. The overall US unemployment rate also fell for the second consecutive month, down to 11.1% over June from 13.3% in May.

Todays readings held greater significance following last months calamitous forecasting which took econometric models far beyond historical president. Analysts predicted -8 million job losses during May versus the upwardly revised 2.69 million gain.

Economists are now trying to figure out core unemployment to assess the long-term numbers rather than those temporarily out of work. Several states are scaling back or pausing reopening due to a second wave of Covid-19 infections sweeping across the US, leading to more workers being classified as employed that are actually absent.

With the race for the White House heating up ahead of Novembers Presidential election, the positive data will also be of relief to President Trump who currently trails rival Joe Biden in all opinion polls except on his handling of the economy.