The U.S. economy likely boosted employment at record levels in June as more bars and restaurants resumed operations. Though this would indicate that the virus-driven recession was probably over, an upsurge in new coronavirus cases threatens any economic pick-up.
Despite recording two consecutive months of gains, the country’s employment would still be about 16.6 million jobs below its pre-virus level. The unemployment rate is expected to decline by 12.3%, placing below its 13.3% record in May.
The Labor Department’s closely monitored employment figures would add to a pile of figures showing a sharp recuperation in economic activity.
The economic rebound was acknowledged by Federal Reserve Chair Jerome Powell, saying that the economy had “entered a new phase and had done so sooner than expected.” However, he warned that the outlook remains tentative as it would rely on “our success in containing the virus.”