Record job gains draw mixed reaction

The U.S. economy added a record number of jobs in June, but economists warn the damage done by the COVID-19 pandemic isn't over. NBC's Chris Pollone reports.

WASHINGTON (NBC News) — The U.S. economy added a record number of jobs last month, fueled by states ending coronavirus lockdowns and reopening businesses.

Still, economists see continuing tough times ahead for workers.

American companies added nearly five million people to their payrolls in June.

It was the second straight month of job growth after the coronavirus shut-downs wiped out more than 20 million jobs in April.

“Today’s announcement proves that our economy is roaring back,” President Trump said.

Unemployment fell to 11-percent after peaking near 15 percent in April, but the economy still has about 15-million fewer jobs than it did in February.

Analysts say a continuing recovery will depend on the nation’s response to the ongoing coronavirus crisis.

“If you don’t get the disease under control, the economy can’t return to normal because people don’t feel safe,” says Julia Coronado of MacroPolicy Perspectives.

While the White House is painting a rosy picture, the data for the jobs report ended in mid-June before some states started rolling back their business reopenings amidst spikes in COVID-19 cases, tempering some of the exuberance which would normally come with these job numbers.

“One way to think about that is we had a nine inch knife stuck in our back,” says Seth Harris of the Cornell University Institute for Public Affairs.  “The knife has been pulled out about three inches that does not mean the economy is now healthy.”

The Labor Department reported there were 1.4 million new unemployment claims last week; about 19 million Americans are now receiving unemployment benefits.

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