The U.S. economy gained more jobs than expected last month, helping to bolster optimism that the economic recovery remains on track despite the Covid-19 crisis.
According to a report by the Bureau of Labor Statistics, the economy added 187,000 jobs in August, well above the estimates of 1.35 million. The unemployment rate also fell from 10.2% to 8.4%, its lowest since March.
The job creation was led by the leisure and hospitality sectors, which added more positions than in any other month since the pandemic began. The sector, which includes restaurants, hotels, and other recreational activities, gained 421,000 jobs in August, more double the expectations of 159,000. The healthcare sector also performed well, adding an additional 35,000 positions, alongside the professional and business services sector, which added 68,000 jobs.
The jobs report is good news for the economy, which has struggled since the start of the Covid-19 crisis. Though the report does not reflect the effects of the recent resurgence of coronavirus cases, which could cause job losses in the coming months. Nevertheless, the results point to a labor market that is still slowly recovering.
Furthermore, the federal government has taken steps to stimulate the economy, passing additional stimulus packages that will help to prop up businesses and individuals. These measures, while helpful, may not be enough to fully offset the impact of the Covid-19 crisis.
Given the uncertain economic outlook, Americans should take measures to protect their finances, maintaining a budget and saving as much as possible for any future challenges that may arise. Though the job market may have shown some improvement in August, the road to full recovery is far from over.
