September 2020 U.S. Job Growth: 661,000 New Positions Added Amid Economic Uncertainty

In September 2020, U.S. employers created 661,000 new jobs, a figure that fell short of analysts' forecasts as hiring momentum slowed amid growing concerns over a COVID-19 resurgence and economic recovery challenges.

Highlights

• 661,000 jobs added across the U.S. in September 2020
• Unemployment rate decreased to 7.9%
• Job market news overshadowed by President Trump’s COVID-19 diagnosis
• Racial disparities in unemployment rates persist

Despite the slowdown, the unemployment rate improved from 8.4% to 7.9%, signaling some progress as fewer Americans filed for unemployment benefits. Approximately 51% of the jobs lost since March have been regained, yet the labor market still faces significant challenges with 12.6 million people officially unemployed, according to the U.S. Bureau of Labor Statistics.

The U.S. economy has recovered 9.4 million out of the 22 million jobs lost during the initial pandemic months of March and April, but job growth is decelerating.

This September jobs report was released just before the November 2020 election and was largely overshadowed by President Trump, the First Lady, and key staff testing positive for COVID-19. The uncertainty surrounding the election, virus resurgence, and economic outlook contributed to a decline in U.S. stock markets, which fell for the first time in four days.

Sector-Specific Job Gains

The strongest job growth in September occurred in sectors most impacted by the pandemic:

• Leisure & Hospitality: +318,000 jobs
• Retail Trade: +142,000 jobs
• Health Care & Social Assistance: +108,000 jobs
• Professional Services: +89,000 jobs
• Transportation & Warehousing: +74,000 jobs
• Manufacturing: +66,000 jobs

Unemployment Rates by Race

Labor market recovery remains uneven across racial groups, with Black and Hispanic workers facing higher unemployment rates compared to White and Asian workers:

• White: 7.0%
• Black: 12.1%
• Hispanic: 10.3%
• Asian: 8.9%

Rising Long-Term Unemployment

While rehiring of temporarily laid-off workers continues, the number of individuals unemployed for 27 weeks or longer has increased to 2.4 million. Additionally, 19.4 million people reported being unable to work due to employer closures or reduced business amid the pandemic.

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