Washington (AFP)

Unemployment fell more than expected in August in the United States, dropping significantly below the symbolic 10% mark for the first time since the start of the pandemic, which delighted Donald Trump as the elections approach.

In August, the unemployment rate fell to 8.4% from 10.2% in July.

This is much better than expected by analysts, who saw it remain close to 10%.

"Great employment figures! 1.37 million jobs created in August," responded the Republican president on Twitter.

"The unemployment rate falls to 8.4% (Wow, so much better than expected!). Returned below 10% much faster and stronger than expected," he said.

This is the penultimate employment report before the November elections.

For now, many recreated jobs remain precarious, and many unemployed people may not find a job for a long time.

And among the 1.4 million jobs created, a large number are temporary because they are hires under the census.

The Labor Department also reports "notable job gains (...) in retail, professional and business services, leisure and hospitality, and education and health services" .

"It is a great day for America", added Vice President Mike Pence, assuring that "the return of America is launched".

Job creation, however, slowed from 1.8 million in July and a record 4.8 million in June, when 20.5 million jobs were destroyed in April alone.

In addition, the level remains far from that before the pandemic, in February: the job market had 11.5 million additional jobs compared to today.

"The sharp drop in the unemployment rate is encouraging but (the level) remains high. The number of permanently destroyed jobs is increasing, which is worrying," commented Rubeela Farooqi of High Frequency Economics.

Indeed, 534,000 people who were temporarily unemployed are now permanently unemployed, their employer not being able to rehire them.

In addition, many recreated jobs remain precarious: the number of part-time workers suffered has decreased compared to July, but they are still 3.3 million more than in February not being able to work on time. full.

The unemployment rate jumped in April, peaking at 14.2% due to containment measures in the face of the pandemic.

In two months, it had gone from a low in 50 years to a high in 80 years.

Economic activity then restarted with fanfare at the end of spring, before suffering an upsurge in Covid-19 cases in the country between the end of June and mid-August, with peaks of 70,000 contaminations per day.

She is now struggling to keep up.

And every week, several hundred thousand Americans continue to register as unemployed.

- Virtual start of the school year -

Many economists, like those at the US Central Bank (Fed), are now worried about long-term unemployment.

After six months of unemployment, it becomes difficult to find a job, explained to AFP William Spriggs, chief economist of the AFL-CIO, the largest American federation of unions.

It is also the maximum duration of payment of unemployment benefits, the amounts and duration of which vary from state to state.

While back to school is virtually back to school for many American schoolchildren, many women could suffer as a result, forced out of the workforce to care for children, whose classroom is now home.

Their withdrawal from the labor market could thus artificially lower the unemployment rate.

The economic recovery is also threatened by the failure of negotiations between the White House and the Democrats in Congress on a new plan to help households, businesses, schools and local communities.

Millions of Americans without jobs, or whose incomes have fallen, have lost since the beginning of August an additional assistance of 600 dollars per week.

However, it had largely enabled the American economy to restart, by stimulating its main engine: consumption.

"The $ 600 supported the consumption of the poorest 75%", further details William Spriggs, fearing "without this money", to see "a collapse" of the economy.

Donald Trump signed an executive order to replace her temporarily, to the tune of $ 400 per week.

States must put their hands in their pockets, which some have refused, preventing their inhabitants from benefiting from it.

© 2020 AFP