The US unemployment rate fell to 7.9% in September

More than 660,000 new jobs were created in the United States in September.

The Labor Department said that 661,000 new jobs were created in the United States in September, which was lower than economists ‘ forecasts. Still, the unemployment rate fell to 7.9%, demonstrating the slow recovery of the economy after the Covid-19 pandemic.

New jobs added last month accounted for less than half of the nearly 1.5 million positions added in August, indicating a slowdown in the pace of employment recovery after mass layoffs began in March due to the closure of many businesses as part of the fight against the spread of infection.

“In September, there was a noticeable increase in jobs in leisure and hospitality, retail, health and social care, and professional and business services,” the Labor Ministry said in a statement.
“Employment in the government sector declined over the month, mainly in education at the state and local government levels,” the Ministry added.

The drop in the unemployment rate from 8.4% in August to 7.9% in September was more than expected. Still, the share of the economically active population fell by 0.3 percentage points to 61.4%, leveling the achievements of August. This figure last month was 2 points lower than in February, before the start of the pandemic.

The Labor Department also acknowledged the impact of possible classification errors. This means that 0.4 percentage points may underestimate the unemployment rate.

Daniel Zhao, an economist at the online recruitment site Glassdoor, believes that the decline in the unemployment rate was due to the return to work of 1.5 million people temporarily laid off.

However, he said the 345,000 increase in permanent job losses reflected in the report is a bad sign, and the report overall “confirms evidence of a slowing but continuing economic recovery over the past few months.”