The U.S. Labor Department reported the economy added 943,000 jobs in July and the unemployment rate came in at 5.4%, down from June's 5.9%. The unemployment rate in January 2021 when Trump left office was 6.3%. The Department also reported that the economy also added 119,000 more jobs in May and June than they originally reported. So in President Biden's first full six months in office (Feb. - July) 3,987,000 jobs have been added to the economy which averages 664,500 per month.
The Department also reported: (a) The Hotel, leisure and restaurant industry that had been slow to add jobs, led job creation in June and July and has come back strongly those two months. (b) Hourly wages increased in July 4% over the same period of last year. (c) Biden's $1.9 trillion COVID stimulus was driving the job market and economic recovery along with COVID vaccinations and the opening up of business activity. (d) The GOP governors cancellation of unemployment benefits in their states had very little effect on the job numbers. (e) The economy is in a strong position but still may be affected if the COVID delta variant causes another "shutdown."
The bottom line is job creation and the economy is still uncertain because of COVID which makes Biden's infrastructure legislation along with his parallel legislation more important for congress to pass in order to keep the economy working with better paying jobs. Policy and plans to take on the issues are needed now more than ever before and the Biden administration is doing its part to build back better with an economy that works for all and for the long term.
And as Politidose pointed out in commentary many times, precedent tells us democratic administrations have a better record at governing.
This commentary written by Joe Lorio
