US July jobs growth expected to have slowed significantly amid resurgence in new coronavirus infections

US July jobs growth expected to have slowed significantly amid resurgence in new coronavirus infections

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US jobs growth is expected to have slowed significantly in July amid a resurgence in new coronavirus (COVID-19) infections, clear evidence that the recovery of the world's biggest economy from the recession caused by the pandemic is faltering. July non-farm payrolls are forecast to have increased by 1.58 million, which would be a sharp fall from the record 4.8 million posted in June. That would leave US jobs 13.1 million below their pre-pandemic level. Employment peaked at 152.5 million in February. The unemployment rate is expected to drop to 10.5% from 11.1% in June. The report could pile pressure on the White House and Congress to speed up negotiations on another aid package. Talks have been dragging over differences on major issues including the size of a government benefit for tens of millions of unemployed workers. A $600 weekly unemployment benefit supplement expired last Friday, while thousands of businesses have burned through loans offered by the government to help with wages. Economists estimate the Paycheck Protection Program that gave businesses loans that can be partially forgiven if used for employee pay saved around 1.3 million jobs at its peak. The extra $600 weekly unemployment checks made up 20% of personal income and helped to boost consumer spending in May and June. Average hourly earnings are forecast to fall 0.5% in July after a drop of 1.2% in June, with most of the job gains skewed towards lower-wage industries.

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