U.S. Labor Secretary Marty Walsh on Friday touted the strong gains reflected in the Labor Department’s July jobs report, telling Spectrum News in an interview that the numbers are a sign that the U.S. economy is recovering from the devastating impact of the COVID-19 pandemic.
“We’re not fully back to where we were pre-pandemic as far as the employment numbers in our economy, but we’re getting there,” Walsh said.
U.S. employers added 943,000 new jobs in July, according to the new Labor Department report – far exceeding economists’ forecasts of 860,000, and reflecting the largest gain since August 2020.
Unemployment also dropped to 5.4% in July, down from 5.9% the previous month, and average hourly earnings were up by 4% from the previous year. Noteworthy gains in the leisure and hospitality sector, as well as professional and business services and public schools, helped bolster the strong report.
Walsh gave the economic policies President Joe Biden credit for the promising job growth figures.
“Since President Biden has been inaugurated, 4 million jobs have been added to the economy,” Walsh said Friday. “It’s the fastest growth in 40 years.”
“We saw good growth in government and in education, specifically,” Walsh said. “We also saw [increases in the] manufacturing sector, and an increase in hospitality, leisure and restaurants. So the industries we want to see increases are doing the right thing.”
Hotels and restaurants – two industries ravaged by the COVID-19 pandemic – fared particularly well, adding 327,000 jobs last month.
Walsh acknowledged that there is still more work to be done to come back to pre-pandemic levels – “We’re about 75% back, we still have about 25% of the way to go” – and allowed for the possibility that the delta variant could upend strong progress in the months to come.
The Labor Secretary highlighted that President Biden is “focused on getting our economy opened up getting people back to work and moving us forward,” specifically noting the nearly $1 trillion bipartisan infrastructure bill and the $3.5 trillion budget measure which will cover what the White House calls “human infrastructure,” including paid family leave and education programs.
One blemish in the July jobs report were rates for minorities, especially among Black and Latino workers. In July, the unemployment rate for Black workers fell to 8.2%, and 6.6% for Latino workers.
“Even though we saw a full point drop in the black community, it’s still concerning,” Walsh said. “So it’s showing that the recovery, is, right now at this point, is still not equitable across the board.”
“We have to continue to be very intentional about our work there … to lower that unemployment number, making sure that the Black community gets, not just jobs, but good paying jobs,” he added.
The July report, coupled with the Labor Department’s revised job numbers for May and June, paint a picture of a U.S. economy that has bounced back with surprising vigor.
“Now while our economy is far from complete, and while we doubtlessly will have ups and downs along the way as we continue to battle the delta surge of COVID, what is indisputable now is this: The Biden plan is working,” President Biden said at the White House on Friday. “The Biden plan produces results, and the Biden plan is moving the country forward.”
But the resurgence of new COVID-19 cases in the U.S., fueled by the highly contagious delta variant, could potentially slow momentum in the months ahead.
Asked on Friday whether new uptick in COVID-19 cases could upend recent economic gains, Walsh conceded that “it could.”
“I’m hoping it doesn’t, but it could,” he added, urging people to “follow the science” when it comes to COVID-19 precautions.
“As I listen to officials around the country, some people are putting in place mask mandates, some people say no mask mandates, I think follow the science,” he said, calling for people to wear masks and get vaccinated.
“For some reason, it’s turned into a political issue in this country,” the former Boston mayor said. “Vaccines are not political. Vaccines are about keeping yourself, your family and the people around you safe.”
Walsh lamented the politicization of the COVID-19 pandemic, and chided Republican governors who have refused to adopt new mask mandates in accordance with new CDC guidelines.
“It’s short-sighted,” Walsh said. “And it’s putting people in harm’s way.”
“When the CDC saw that … the virus numbers went down, we took the mask mandate away,” Walsh added. “When we saw people not getting not getting the vaccine, we’ve seen these numbers going back up.”
“The science tells us kind of how to manage this virus,” Walsh continued. “Let’s follow the science.”
He also underscored the urgency for Americans to get vaccinated. “We have to increase the ability for people to get the vaccine, and we have to encourage people to get the vaccine,” Walsh said.
“For some reason it’s turned into a political issue in this country – vaccines are not political. Vaccines are about keeping yourself, your family, and the people around you safe.”
Walsh also strongly refuted the notion that some Republican states that opted to slash extra unemployment benefits for their residents had any impact on the new employment numbers.
“I don’t think that had any kind of impact on these numbers,” Walsh said. “If you look at the last three month job gains we’ve averaged 800,000, those first two months to $300 benefit was in existence.”
“We’re seeing great growth and it has nothing to do with ending the $300,” he added.
Watch Spectrum News’ full interview with Labor Secretary Marty Walsh above.
