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In August, America added nearly 1.4 million new jobs according to the Bureau of Labor Statistics monthly Employment Situation Report, in line with the consensus forecast. The unemployment rate fell by 1.8 percentage points to 8.4 percent, the second largest decline on record. The August jobs report confirms that the strong recovery continues.
Just a few months ago, America had an unemployment rate of 3.5 percent—the lowest rate in 50 years—before jumping to a peak of 14.7 percent in April due to devastation wrought by COVID-19. But between April and August, the unemployment rate fell by 6.3 percentage points to 8.4 percent. For perspective, following the Great Recession of 2008-09, it took nearly a decade for the unemployment rate to fall by 6.3 percentage points. President Trump’s economy accomplished this in just four months.
Under this Administration, America is on track to witness the fastest labor market recovery from any economic crisis in history. For four months, the employment report has met or exceeded expectations. In fact, the labor market in August performed better than what most major forecasts projected would occur by year’s end. In July, the Congressional Budget Office (CBO) projected a 10.5 percent unemployment rate in the fourth quarter while both Blue Chip and the Federal Open Market Committee (FOMC) projected unemployment rates of 9.3 percent in the fourth quarter.