Job growth in the US was supposed to be an indicator of economic recovery, but it slowed as soon as the infusion of funds from the state budget stopped.
This was reported on Friday, September 4, by Reuters.
Most programs to help businesses pay wages have already been closed. The current situation clearly demonstrated how heavily the American economy is now dependent on government subsidies. In August, the unemployment rate fell to 8.4% from 10.2% in July. However, employment is still 11.5 million below the level that preceded the pandemic.
Moreover, nearly a fifth of the employment growth reported by the Department of Labor came from the US census, which recruited temporary workers en masse across the country. At the same time, companies across a wide range of industries are reporting new layoffs.
Thus, United Airlines announced on Wednesday its intention to fire 16.4 thousand workers on October 1. The American Airlines staff will be reduced by 40 thousand people. Ford Motor plans to eliminate 1.4 thousand jobs by the end of the year.