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US Records 4.8 million Job Gains in June, But Let’s Look at the Full Picture

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  • The jobs report for June showed that the U.S. gained 4.8 million jobs back last month and the unemployment rate fell to 11.1% from 13.3% in May.
  • President Trump touted the report in a press conference, saying the U.S. is seeing record-breaking numbers and that economy was coming back strong.
  • However, as many pointed out, unemployment is still the highest its been since World War II and over 1 million people are still filing for unemployment every week.
  • Others also noted that the data from the report is from the week of June 12 and does not show the recent business closures made by governors in several states reimposing restrictions due to coronavirus spikes.
  • Economists have warned that the renewed closures in some states and the fact that many other states have slowed their planned reopenings will result in more layoffs.

June Jobs Report

The U.S. economy gained 4.8 million jobs in June and the unemployment rate fell to 11.1% from 13.3% the month before, according to a monthly report released by the Bureau of Labor Statistics (BLS) Thursday.

Following the publication of the June report, President Donald Trump touted the new numbers during a press conference Thursday morning.

“Today’s announcement proves that our economy is roaring back,” he said. “It’s coming back extremely strong.” 

“This is not just luck, what’s happening. This is a lot of talent,” he continued. “All of this incredible news is the result of historic actions my administration has taken working with our partners in Congress to rescue the U.S. economy.”

Trump also repeatedly claimed the job gains and employment numbers provided in the BLS report were record-breaking on multiple fronts.

However, many have noted that the only reason the U.S. is seeing record-breaking job gains is because it has experienced the record-breaking job losses. 

That fact has even been echoed by members of Trump’s administration, including Treasury Secretary Steve Mnuchin, who acknowledged that unemployment is still extremely high by historical standards at the press conference Thursday.

Throughout the pandemic, American’s have seen unemployment rates similar to that of the Great Depression. Even now, unemployment is still the highest its been since World War II.

What the Data Shows

There are still over 17 million American’s unemployed, according to the BLS report. While it is true that we gained 4.8 million jobs back last month, more than 1 million people filed for unemployment every week in June including this past week, which saw 1.4 new claims.

There are also a number of other indicators in the BLS data that show that American’s are hurting.

For example, while the number of people temporarily laid off decreased by 4.8 million, the number of permanent job losses actually increase last month, rising by over half a million to 2.9 million total. 

That suggests that many of the people going back to work are those who were furloughed during the shutdowns, meaning that the economy is simply getting back jobs it had temporarily lost, not adding or creating new jobs. 

That fact was also noted by numerous Twitter users who sought to point out the holes in the president’s remarks. 

“No, Trump did NOT create 4.8 million jobs in June – some people went back to their old jobs,” one user wrote.

Many other users also compared the unemployment rates of Black people and other people of color to that of white people, likely in response to Trump championing minority job growth while speaking at the press conference Thursday.

“African-American workers, really happily for me, made historic gains, with 400,000 jobs added last month alone and that’s a record,” he said. “Hispanic employment is up by 1.5 million jobs, a record by a lot.” 

However, the BLS data minority unemployment has consistently remained higher than white unemployment— especially for Black people. In fact, according to a report from Reuters, the gap in U.S. Black and white unemployment rates is widest its been five years.

“Jobless rates for both groups fell in June, but the rate for whites came down at a much faster rate. The white unemployment rate fell 2.3 percentage points to 10.1% from 12.4%, while the rate for Blacks dropped 1.4 points to 15.4% from 16.8%,” the report said.

According to the BLS data, unemployment fell from last both groups in general, the unemployment rate among Black men over 20 actually rose from May to June, growing from 15.5% to 16.3%

While the discrepancy between Black and white unemployment was the most significant, white unemployment is still quite a bit lower than Hispanic unemployment which was 14.5% last month, and Asian unemployment, which was 13.8%.

Those numbers appear to support the claims of numerous experts who have said that people of color have been disproportionately hurt by the economic crisis.

“Disproportionately, the layoffs have been in lower wage occupations, in lower wage positions,” Gary Burtless, a labor economist at the Brookings Institution told the New York Times. “That has disproportionately affected African-Americans and Hispanics.”

Growing Concerns

While the BLS report does show the discrepancies between Trump’s rosy outlook and reality, it is only part of the picture.

There are several issues with the BLS data, and the agency has made readily apparent. It has repeatedly warned that the actual unemployment numbers are higher than what has been reported because of flaws in the data collection process. On Thursday, the BLS said that it believes the official unemployment rate for June is actually a whole percentage point higher.

But that is not the only problem. Arguably the biggest issue is that the data in this report was taken the week ending June 12, and since then, a number of states have shut down businesses again in response to the recent spikes in coronavirus cases.

Just in the last week, the governors of Florida and Texas have shut down bars and other commercial activities. California has stopped indoor restaurant dining and closed movie theaters in most major cities. Arizona has also shut down water parks, bars, and gyms.

Numerous other states have postponed their planned reopenings. As a result, some workers are now reportedly getting laid off for the second time. 

Those closures and delays are expected to grow as cases continue to surge. On Thursday, the U.S. reported a new record of 50,000 coronavirus cases on a single day. New cases have risen a whopping 50% in the last month, according to the Washington Post

With those numbers rising and states with huge economies like Texas and California reimposing restrictions, many economists are worried that Americans will see more layoffs.

“The virus drives the economics,” Betsey Stevenson, a member of former President Barack Obama’s Council of Economic Advisers told the Times. “We’re not going to have people going back to work. In fact, we’re going to see more people staying home.”

See what others are saying: (NPR) (The New York Times) (The Washington Post)

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Man Spent COVID Relief Loan on $58,000 Pokemon Card, Feds Say

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The man is facing a wire fraud charge, which carries a max sentence of up to 20 years in federal prison, along with a $250,000 fine.


COVID Relief Funds Used on Pokemon Card

Authorities have accused a man in Georgia of misusing COVID-19 relief funds, claiming that he spent $57,789 on a single Pokemon card.

Prosecutors said Vinath Oudomsine made false statements about the gross revenue his business earns and the number of workers he employs when he applied for aid authorized under the CARES Act.

On his July 2020 application, Oudomsine allegedly claimed he had 10 employees and 12-month gross revenues of $235,000.

The following month, he was given about $85,000 from the Small Business Administration (SBA), which means he spent nearly all of the money on the rare card.

Authorities have given few details about the specific card purchased, though they have said Oudomsine was charged with wire fraud and is expected to appear in court on Thursday.

The charge carries a max sentence of up to 20 years in federal prison, along with a $250,000 fine.

Misuse of COVID Relief Funds

Oudomsine is far from the first person to face charges for fraud related to small business loans issued amid the pandemic. Others who received relief funds have been accused of spending the money on Lamborghinis, nights at strip clubs, and even an alpaca farm, among other purchases.

In fact, the first person to be charged with fraudulently seeking a pandemic relief loan was recently sentenced to 56 months in prison following a nationwide search after the man faked his own death.

According to The Washington Post, a federal watchdog said this month that the SBA overpaid $4.5 billion in grants to self-employed people and that “no system of controls was in place to flag applications with flawed or illogical information.”

On top of that, the SBA inspector general determined earlier this year that the agency rushed to send out billions of dollars in loans through the Paycheck Protection Program (PPP) “at the expense of controls” that could have blocked inappropriate aid.

In a statement on Sunday, the agency said that under the Biden administration, it has worked with Congress and the inspector general to add antifraud measures. Meanwhile, defenders of pandemic relief programs have argued that flagged loans and grants represent only a small fraction of the distributed aid that has been critical to small businesses and their pandemic recovery.

See what others are saying: (NPR)(USA Today)(The Washington Post)

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FDA Authorizes Moderna and J&J COVID Vaccine Boosters, Approves Mix-and-Match Doses

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The approval will allow at-risk Americans who received Pfizer and Moderna vaccines to get any booster six months after their initial series and all Johnson & Johnson recipients 18 and older to do the same two months after their single-shot dose.


New FDA Authorization

The U.S. Food and Drug Administration (FDA) on Wednesday authorized boosters shots of Moderna and Johnson & Johnson COVID-19 vaccines and approved a mix-and-match strategy that will allow people who got one company’s shot to get a booster from a different maker.

The decision paves the way for millions of more at-risk Americans to get extra protection, and not just certain Pfizer recipients as previously approved by the FDA.

Under the authorization, people who received Moderna or Pfizer can get any one of the three booster shots six months after completing their initial series if they are 65 and older, at high risk of severe COVID, or face increased exposure because of their work.

Meanwhile, all J&J recipients 18 and older can get any of the approved vaccines two months after they received the one-shot jab.

Hazy Recommendations, For Now

Notably, the FDA did not recommend a certain combination of vaccines, nor did the agency say whether or not it would be more effective for people to stick with their original vaccine maker for their booster.

The new authorizations draw on a study from the National Institutes of Health (NIH), which found that there are no safety concerns with mixing boosters and that vaccine combinations were at least as effective in stimulating antibodies as matched vaccines.

In the case of J&J recipients, the NIH found that people actually had a higher boost from mixing either Moderna or Pfizer boosters.

However, some of the scientists who worked on the study said it should not be used to recommend one combination over another because the research was limited.

The Centers for Disease Control and Prevention (CDC), which determines vaccine recommendations, could issue more guidance on when and whether people should switch vaccine makers for their booster shots.

An advisory panel for the agency is meeting Thursday to discuss the new FDA authorizations and recommendations.

Once the panel makes its decision, the CDC director has the final say on the guidelines. If the agency agrees with the FDA’s decisions, the booster shots could be rolled out as soon as this weekend.

See what others are saying: (The New York Times) (NPR) (The Washington Post)

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Paris Hilton Urges Lawmakers To Crack Down on Abusive Teen Treatment Facilities

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The heiress alleges that she was a victim of abuse in these types of centers for two years and wants to ensure that no child suffers through the same experience.


Paris Hilton Details Abuse Within “Troubled Teen Industry”

Socialite and entrepreneur Paris Hilton spoke outside of the U.S. Capitol on Wednesday to support the Accountability for Congregate Care Act, which is set to be introduced in the near future.

Hilton joined Rep. Ro Khanna (D-CA), Rep. Adam Schiff (D-CA), Rep. Rosa DeLauro (D-Conn.), and Sen. Jeff Merkley (D-Ore.) to advocate for the legislation, which aims to create a “bill of rights” for children in treatment and behavioral centers.

The heiress has alleged that she spent two of her teenage years in these types of facilities and was subject to rampant abuse. She is far from alone. 

During a press conference, Hilton said that one night when she was 16, she woke up to two large men in her bedroom forcing her out of her house. She said she screamed for help because she thought she was being kidnapped, but her parents watched as she was taken away to a “troubled teen” program. 

“Like countless other parents of teens, my parents had searched for solutions to my rebellious behavior,” she explained in an op-ed for The Washington Post this week. “Unfortunately, they fell for the misleading marketing of the ‘troubled teen industry’ — therapeutic boarding schools, military-style boot camps, juvenile justice facilities, behavior modification programs and other facilities that generate roughly $50 billion annually in part by pitching ‘tough love’ as the answer to problematic behavior.”

Hilton said she was sent to four different facilities where she was “physically and psychologically abused.” 

“I was strangled, slapped across the face, watched in the shower by male staff, called vulgar names, forced to take medication without a diagnosis, not given a proper education, thrown into solitary confinement in a room covered in scratch marks and smeared in blood and so much more,” she explained during the press conference. 

“At Provo Canyon School in Utah, I was given clothes with a number on the tag. I was no longer me, I was only number 127,” she continued. “I was forced to stay indoors for 11 months straight, no sunlight, no fresh air. These were considered privileges.”

Goals of the  Accountability for Congregate Care Act

Hilton claims that a lack of transparency and accountability has allowed this structure of abuse to thrive for decades. In some cases, she said it has taken children’s lives. Now, she wants Congress and President Joe Biden to act. 

“This bill creates an urgently needed bill of rights to ensure that every child placed into congregate care facilities is provided a safe and humane environment,” Hilton said of the Accountability for Congregate Care Act.

“This bill of rights provides protections that I wasn’t afforded, like access to education, to the outdoors, freedom from abusive treatment, and even the basic right to move and speak freely. If I had these rights and could have exercised them, I would have been saved from over 20 years of trauma and severe PTSD.” 

Foster children, children being treated for mental disorders, and other children in youth programs would be impacted by the bill.

Hilton was one of several survivors and advocates who fought for the legislation on Wednesday. Rep. Khanna thanked them for using their stories to fight for change. 

“No child should be subjected to solitary confinement, forced labor, or any form of institutional abuse,” he wrote. “Thanks to Paris Hilton, my colleagues & the survivors & advocates who joined us today to discuss how we can hold the congregate care industry accountable.”

While only Democratic legislators are currently sponsoring the bill, Hilton called for a bipartisan effort to fight for the rights of children. 

Ensuring that children are safe from institutional abuse isn’t a Republican or Democratic issue,” Hilton said. “It’s a basic human rights issue that requires immediate attention.”

See what others are saying: (The Washington Post) (The Hill) (NBC News)

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