August jobs report likely to point to a still-slow recovery

WASHINGTON (AP) — The United States keeps regaining more of the jobs that vanished when the viral pandemic flattened the economy early this spring. Yet so deep were the layoffs that began in March that millions of Americans remain burdened by job losses that might prove permanent.

Economists have forecast that employers added 1.4 million jobs in August and that the unemployment rate fell from 10.2% to 9.8%, according to a survey by data provider FactSet. That rate would still be just below the peak unemployment level of the 2008-2009 Great Recession.

The Labor Department will issue the August jobs report at 8:30 a.m. Eastern time Friday.

While a monthly gain above 1 million would show that some businesses are still willing to add workers, it would take many months to return to pre-pandemic job levels even if that pace could be sustained. And many economists think hiring is slowing. The economy still has roughly 13 million fewer jobs than it did when the coronavirus struck in March.

Friday’s jobs data will be the second-to-last employment report — for most voters, the most visible barometer of the economy — before Election Day, Nov. 3. President Donald Trump faces the daunting task of seeking re-election in the worst economic downturn since the 1930s. Yet voters in surveys have generally given him higher marks on the economy than they have on other aspects of his presidency.

The jobs report coincides with growing signs that more companies are making permanent job cuts rather than temporary furloughs. That trend could keep the unemployment rate persistently high. It is typically harder for an unemployed worker to find a new job at a new company or in a new industry than to return to a previous employer.

Casino and hotel operator MGM Resorts, slammed by declines in travel and tourism, said last week that it's...