Despite the ongoing corona pandemic, the labor market situation in the USA has improved more than expected.

The unemployment rate fell in August from 10.2 percent in the previous month to 8.4 percent, as the US Department of Labor announced in Washington.

Analysts had expected a decline to around 10 percent.

According to the agency, 1.4 million new jobs were created in the United States in August, down from 1.8 million in July.

Before the pandemic, the rate in the world's largest economy was 3.5 percent.

Despite an emerging economic recovery, the situation on the labor market remains very tense.

A good 29 million people receive some form of unemployment benefit, as the Ministry of Labor announced.

In the week up to and including August 29, almost 900,000 people applied for unemployment benefits.

The applications reflect the short-term development of the labor market.

In the USA, the ongoing pandemic is weighing on the economy: on average, a good 40,000 new corona infections are reported in the USA every day.

In many states, therefore, restrictions on economic life continue to apply, for example for visiting restaurants and bars.

As a result, many positions in the service sector have been cut and have not yet been filled. 

New stimulus package expected

US President Donald Trump, who is running for a second term on November 3, promises a very rapid economic recovery.

Most analysts are more skeptical, however.

Trump's Republicans, Democrats and the government want to agree on another stimulus package this month.

The negotiations on this had failed before the summer break.

The US Congress has already approved stimulus packages worth around three trillion dollars since the pandemic began.

That corresponds to more than ten percent of the country's economic output.