U.S. economy recovers 1.8 million jobs in July, slower than June gains

The economic recovery from the COVID-19 pandemic slowed in July. The U.S. economy added 1.8 million jobs and the unemployment rate fell to 10.2 percent, according to the Bureau of Labor Statistics (BLS). The increase in nonfarm employment was much lower than the 4.8 million jobs added in June and the 2.7 million jobs added in May, and total nonfarm employment is 12.9 million jobs lower than it was in February.

“The slowdown in jobs gained is likely due to a resurgence of the coronavirus and re-shuttering in parts of the country,” noted Elise Gould, senior economist at the Economic Policy Institute.

Still, job gains did come in ahead of forecasts. Economists had estimated an increase of 1.48 million jobs would be added in July, reported Bloomberg. There are some concerns, though, that a better-than-expected report might weaken the case for additional fiscal stimulus.