US Companies Not Rushing to Rehire Workers; Rising Covid-19 Cases Threaten Recovery

US Companies Not Rushing to Rehire Workers; Rising Covid-19 Cases Threaten Recovery
People walk on the streets amid the global outbreak of the coronavirus disease (COVID-19), in Austin, Tex. on June 28, 2020. Sergio Flores/Reuters
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WASHINGTON—U.S. private payrolls increased less than expected in June as reopening businesses showed little urgency to rehire workers and employers announced more than 170,000 layoffs, bolstering views that the recovery from the COVID-19 pandemic would be a long slog.

Other data on July 1 showed manufacturing activity rebounding in June, hitting its highest level in 14 months as firms and businesses resumed operations. But a surge in coronavirus cases across the country, including populous California, Florida, and Texas, threatens the budding recovery.