"I would say today's jobs report was a good one", Powell said on Friday, referring to the August nonfarm payrolls report released by the Labor Department on Friday. While earlier versions of the report between May and June showed "quite a few people back to work", he said full recovery could take an "extended period of time", adding that "it will be measured in years".
The US labor market lost more than 21 million jobs from March through April, at the height of business lockdowns forced by the COVID-19. It then posted a strong rebound of 2.5 million jobs in May and 4.8 million in June. But the recovery began slowing thereafter, with 1.8 million jobs added in July and 1.4 million in August.
US gross domestic product itself shrank by a record 32.9 percent in the three months to June, as business lockdowns forced by the pandemic took a toll on growth. That, along with the 5 percent contraction in the first quarter, handed the country its worst recession in history this year.
The Federal Reserve has kept US interest rates at between zero and 0.25 percent since the pandemic broke out, saying it might not raise them for a few years until there was sufficient evidence of inflation signaling growth.