Unemployment rate fell to 8.4% in August; nearly 1.4M jobs added

The U.S. unemployment rate dropped to 8.4% in August from 10.2%, beating expectations.

The Labor Department reported Friday that employers added nearly 1.4 million jobs last month.

It was the first time the unemployment rate fell below 10% since the coronavirus pandemic forced widespread shutdowns in March.

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The number of unemployed people fell by 2.8 million, to 13.6 million. In February, before the pandemic, 7.8 million people were out of work.

The improving economy should provide a boost to President Trump’s reelection prospects. In 2012, President Barack Obama won a second term with an unemployment rate of 7.9%.

Vice President Mike Pence, appearing on Fox Business Network, said the report is more proof that Mr. Trump is better able than Democratic nominee Joseph R. Biden to lead the economic recovery.

“We’re going to continue to take our case all across this country, that we need four more years of the kind of policies that lay the foundation for this V-shaped recovery that’s happening all across America,” Mr. Pence said. “It’s remarkable to think that Joe Biden actually was bragging yesterday about his plan to raise taxes on American businesses in the midst of a global pandemic.”

House Speaker Nancy Pelosi said there is still “urgent need” for Congress and the administration to agree on another economic stimulus measure of roughly $2 trillion.  

“More than six months into this crisis, tens of millions are still out of work, particularly in communities of color, with more than 1 million Americans having filed for pandemic and initial unemployment claims for 24 straight weeks — and millions more are facing food insecurity, unsafe schools and workplaces, and the devastating prospect of eviction and homelessness,” she said. “The White House and Senate Republicans have made clear that they still do not comprehend the scale of this disaster or the urgent needs of our communities and the American people.”

She added, “The longer Republicans continue to deny and delay, the more expensive this pandemic will be to the health and economic security of America’s working families. There is no time to waste.”