2.5 YEARS LATER: Economy Recovers Jobs Lost in Democrat Lockdowns

Gov. Andrew Cuomo gives a speech at the Sustainable Development Capital Region Conference, November 29, 2016. Photo courtesy of HUD.

Remember when blue states destroyed the nation’s economy by shutting down every business possible beginning in March 2020? Now, two and a half years later, the economy has recovered the jobs it lost in those shutdowns, and Democrats want to take credit for “job growth.” Most Americans aren’t falling for it. The Wall Street Journal reports on the economy’s recovery from draconian Covid rules, writing:

U.S. employers added a robust 528,000 jobs last month, helping the economy recoup the 22 million positions lost early in the pandemic, as hirers clamored for workers despite a slowdown in economic growth.

The jobs recovery took nearly 2½ years and included a stretch in the first half of the year when payrolls grew faster than during any other post-World War II period that also featured the start of an economic contraction. The unemployment rate dropped to 3.5% last month, a half-century low also seen just before the pandemic in early 2020, the Labor Department said Friday.

Stocks closed mostly lower and bond yields rose on Friday, with the tech-focused Nasdaq Composite recording the steepest declines.

The labor-force participation rate—or the share of adults working or seeking a job—ticked down to 62.1% in July from 62.2% a month earlier. While the economy has recovered all the jobs it lost since February 2020, there are still 623,000 fewer people in the workforce, a factor that has pushed up wages due to a demand for workers that is well above the number of available workers.

Wage growth was stronger than economists anticipated in July, with average hourly earnings rising 0.5% from June and 5.2% from a year ago. Wage growth in June was also revised higher, indicating that earlier data overstated the magnitude of a recent deceleration in the brisk pace of wage growth.

Job gains were widespread last month. Employers in leisure and hospitality added jobs at a solid clip, as restaurants and bars continued to recover. Payrolls also grew in healthcare and professional and business services, which includes many white-collar jobs.

Industries vulnerable to the Federal Reserve’s interest-rate increases also performed well in July. Construction firms, manufacturers and finance companies all added to payrolls.