Unemployment drops to 6.9% and US adds a solid 638,000 jobs

WASHINGTON (AP) — U.S. employers added 638,000 jobs in October, a solid pace though far fewer than needed to regain most of the jobs lost to the pandemic recession just as new viral cases are setting record highs.

The gain suggested that a tentative economic recovery is still intact even as it faces a surging viral outbreak. October’s gain was slightly below the 672,000 jobs added in September and the 1.5 million in August.

But last month’s gain was stronger than it appears: It was held down by the loss of about 150,000 temporary Census jobs. Excluding governments, private employers added a healthy 906,000 jobs. Job growth was particularly strong in construction, retail, and a category that includes restaurants and hotels.

The report Friday from the Labor Department said the unemployment rate fell to 6.9% from 7.9% in September. Still, the nation now has 10.1 million fewer jobs than it did before the pandemic intensified in March.

And the job market and the overall economy are under intensified pressure from the accelerating pandemic. On Thursday, the nation broke another record in the seven-day rolling average for new cases, hitting nearly 90,000. Daily new cases were also on track for another day above 100,000, with surging numbers reported all around the country, including a combined nearly 25,000 in Texas, Illinois and Florida.

The economy, which had rebounded sharply in the July-September quarter as businesses reopened from virus-related shutdowns, is now expanding more slowly. Many businesses, especially restaurants and bars that had made use of outdoor seating, may struggle as the weather turns colder. Consumers could also pull back again on shopping, traveling and other activities to avoid contracting the virus.

Friday’s report follows the expiration of government stimulus for struggling individuals, businesses and state and local governments and the failure of Congress to provide further aid.