U.S. employers hired in February as confirmed virus cases declined, consumers spent most of the government’s aid checks, and the economy appeared to be maintaining a tentative recovery. It may have been increased.
According to data provider FactSet, economists forecast job growth to reach 175,000 last month. That’s well above the average monthly job of just 29,000 people from November to January.
However, there is still a shortage of 10 million jobs at pre-pandemic levels, so monthly jobs are hired, especially to help many who remain dismissed in the restaurant, hotel, entertainment and other hospitality industries. Needs to be significantly accelerated. It’s far from recovery. Assuming more Americans began looking for jobs in February and began to be counted as unemployed, the unemployment rate is projected to rise from 6.3% to 6.4%.
There was little recovery in the job market in January, with only 49,000 added in that month. Meanwhile, Senate Democrats have passed a $ 1.9 trillion COVID bailout bill without a vote in favor of the Republicans.
A year after the pandemic, most analysts are optimistic that hiring will accelerate in the coming months as the economy strengthens and consumer spending and manufacturing indicators rise. I’m strengthening. Americans have accumulated huge savings overall after reducing spending on travel, movie tickets, and visits to bars and restaurants. Much of that money is expected to be spent if most people feel uneasy about going out.
And almost all of President Joe Biden’s $ 1.9 trillion financial remedy package is likely to be approved by Congress in the coming weeks. It provides, among other things, a $ 1,400 relief check for most adults, an additional $ 400 for weekly unemployment assistance, and another round of assistance for small businesses.
With so much money invested in the economy, Oxford Economics predicts that growth will reach 7% across 2021. This is the fastest calendar year expansion since 1984. The Congressional Budget Office predicts that the country will add a substantial 6.2. With 1 million jobs this year, that alone is not enough to bring jobs back to pre-pandemic levels.
Still, as the economy is already showing improvement, the size of Biden’s bailout package could overheat growth, spur rising inflation, raise borrowing costs, and the Federal Reserve raise interest rates. It arouses concern that there is. These concerns have disrupted financial markets over the past two weeks.
Federal Reserve Chair Jerome Powell will ease these concerns Thursday when he suggests that a meaningful rise in inflation is likely to be temporary and the Fed will not rush to raise it. It was made. Its benchmark short-term interest rate.
Powell also did not provide any hint that the Fed would act against the surge in 10-year Treasury yields, which jumped from about 0.9% last year to 1.5% at the end of Thursday. Still, Powell rang some optimistic notes. “There is good reason to expect job creation to recover in the coming months,” he said, partly citing increased distribution and administration of the coronavirus vaccine.
Other recent economic reports also suggest a better time. Americans significantly increased their spending at retail stores and restaurants in January, when most of the $ 600 bailout checks were distributed. Retail sales surged 5.3% after a three-month decline.
The government said last week that factory production also recovered and demand for long-lasting commodities such as cars and aircraft increased by 3.4%.
Home sales have been weeping for most of the past year due to low mortgage rates and more Americans wanting more space during the pandemic. A significant increase in the proportion of teleworkers also boosted sales, with January sales up nearly 24% year-on-year.
U.S. employment growth is likely to have risen in February due to a rebound from the downturn – NBC4 Washington
Source link U.S. employment growth is likely to have risen in February due to a rebound from the downturn – NBC4 Washington