President Donald Trump was ecstatic with the employment statistics released this Friday. To the surprise of the main economic analysts, who expected a further increase in unemployment , the Labor Department reported a decrease, from the historical 14.7% in April to 13.3%, thanks to a net creation of 2.5 million job positions.
“It is a great day for our country, ratification of all the work that we have been doing for three and a half years. We had the best economy in the history of the world, and that strength helped us through this pandemic. Vaccines are not going very well, I had a meeting yesterday. We are going to have very positive surprises. Also with therapies and cures,” said Donald Trump at a press conference at the White House.
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“What happened today is extraordinary. They believed that the number was going to make a loss of 9 million jobs, but we won almost 3 million. No one ever saw anything like that. This leads us to a long period of growth and we will once again have the best economy in the world. We are going to have a very good August, and September, October, and November will be spectacular. Next year will be one of the best we will have had financially, “he added.
Employment data shows that the collapse of the job market caused by the coronavirus has bottomed out. The number of people applying for unemployment benefits has decreased for nine consecutive weeks. And the total number of people receiving such aid has stabilized.
“Our body was so strong that we were able to close our country, save millions of lives, stop the arrival of people from China very early. Then we went on to make respirators such as have not been seen since World War II and we have already done more than 20 million tests, more than anyone else in the world. We have more cases than any other country because we do more testing,” said Trump.
The president then referred to the trade agreement with China, for which an initial agreement was reached, Phase 1, at the end of 2019. “The ink of that agreement was not dry when the plague began to flow from China. So now I see that pact differently than I did three months ago. It is a great deal. They are buying us a lot, and that is good. It would be positive to get along with China, but I don’t know if that will happen. I will let you know. We built a tremendous platform of power, so when we had a problem we were able to stop it and save millions of lives and now we are reopening. There was talk of a ‘V’ shaped growth, but it will be in the form of a rocket. They discussed if it was going to be in ‘V’, in ‘U’, in ‘L’. They had no idea, “Trump said.
“These improvements in the labor market reflected a limited resumption of economic activity that had been restricted in March and April due to the coronavirus pandemic and efforts to contain it,” the Labor Department said in a statement.
As restaurants, movie theaters, gyms, hair salons, and other retail establishments gradually reopen, staff cuts slow down and employers call back some of their laid-off workers. Businesses from different industries are reporting signs of progress even in severely affected industries. American Airlines, for example, said this week that it will fly 55% of its routes in July, up from 20% in May.
“We must not forget that New York is hardly included in that report, and it is one of our most important states. Neither does California, which should already open. Look at what’s going on in Florida, wearing social distancing and masks. It is great what happened and it is because we had such a strong patient that we could close and open it, “said Trump. “This is not a recession. If it were a very big recession it could take ten years to recover. But with a hurricane in a few days you can go back to work, even if it is devastating and hard. This was a hurricane and it is going to improve very quickly. ”
Still, economists say the hiring pace will lag as a severe recession and high unemployment slow down consumer spending, the economy’s main driver. Even with the surprising gain in May, it can take months for everyone who lost their job in April and March to be rehired. Some analysts predict that the rate could remain in double digits until the November elections and even until next year.
