On The Money: Economy adds 4.8M jobs in June | Unemployment to average 6.1 percent through 2030: CBO | Mnuchin says no regrets on pushing to reopen

On The Money: Economy adds 4.8M jobs in June | Unemployment to average 6.1 percent through 2030: CBO | Mnuchin says no regrets on pushing to reopen

Happy Thursday and welcome back to On The Money, where we hope you have a safe and healthy holiday weekend. I’m Sylvan Lane, and here’s your nightly guide to everything affecting your bills, bank account and bottom line.

See something I missed? Let me know at slane@thehill.com or tweet me @SylvanLane. And if you like your newsletter, you can subscribe to it here: http://bit.ly/1NxxW2N.

Write us with tips, suggestions and news: slane@thehill.comnjagoda@thehill.com and nelis@thehill.com. Follow us on Twitter: @SylvanLane, @NJagoda and @NivElis.

ADVERTISEMENT

THE BIG DEAL — Economy adds 4.8 million jobs in June, surpassing expectations: The U.S. economy added 4.8 million jobs last month, according to data released Thursday by the Labor Department, as the gradual easing of coronavirus-related restrictions helped more businesses reopen and bring back workers.

  • The unemployment rate also fell to 11.1 percent last month, according to the report, as more workers who were laid off earlier this year were able to return to their pre-pandemic jobs.
  • Economists expected the U.S. to add anywhere between 1 million and 3 million jobs for the month after the U.S. added 2.7 million in May, according to revised figures, despite widespread predictions of another decline.

See a break down of the report here.

The bad news: While June marked the highest one-month jobs gain in U.S. history, the report also included some troubling signs of deeper pain:

  • A more current indicator – weekly initial unemployment claims – remained elevated at historic levels. For the week ending June 25, new claims came in at 1.43 million, down from 1.48 million the previous week. 
  • The number of U.S. workers who permanently lost their jobs climbed in June by 588,000 to a total of 2.8 million. The number of workers who've been jobless for at least 15 weeks also rose by 825,000, and those who have been unemployed for more than 27 weeks rose by 227,000.

 

LEADING THE DAY

ADVERTISEMENT

Unemployment to average 6.1 percent through 2030, CBO says: The COVID-19 pandemic will leave lasting scars on the U.S. economy, which will have an average unemployment rate of 6.1 percent through 2030, according to new projections from the Congressional Budget Office (CBO). 

The January projection pegged average unemployment over the decade nearly 2 full points lower, at 4.2 percent. The latest projection puts the average rate for 2020 at 10.6 percent and says it will drop to 7.6 percent by the end of next year. Average unemployment remains above 5 percent until 2025 in the CBO report.

Likewise, the overall size of the economy is projected to be 3.4 percent lower each year through 2030 than pre-pandemic projections showed. The Hill’s Niv Elis walks us through the forecast here.

Manhattan apartment sales see worst decline in 30 years: Manhattan apartment sales went down by 54 percent in the second quarter of this year, marking the steepest decline in 30 years, according to a report from Miller Samuel and Douglas Elliman obtained by multiple media outlets.

The median sales price fell 18 percent to only $1 million, the biggest decline in a decade. A study from Compass found there were only 1,147 sales in Manhattan in the second quarter, the lowest number on record.

The report noted that it took course over a period which overlapped with New York’s ban on in-person apartment tours, an “unprecedented shutdown [that] skewed the results.”

GOOD TO KNOW

 

Recap the week with On The Money: