Sunday, December 5, 2021

WATCH LIVE: Biden talks job growth in October

WASHINGTON (AP) – US employers ramped up recruitment in October, adding 531,000 jobs, the most since July, a sign that recovery from the pandemic recession could overcome the virus-driven downturn.

Watch Biden’s comments live on the video player above at 10:15 am ET.

Friday’s Labor Department report also showed that the unemployment rate fell to 4.6% last month from 4.8% in September. This is a relatively low rate, but still significantly higher than the pre-pandemic unemployment rate of 3.5%.

By most indicators, the economy continues to recover from the pandemic. Companies providing services in areas such as retail, banking and warehousing reported a sharp jump in sales. More and more Americans bought new homes in the past month. And consumer confidence rose in October.

However, the recovery will gain momentum thanks to a sustained acceleration in hiring. The economy grew at a healthy 6.5% per annum in the first half of the year as vaccinations spread, and Americans showed a greater willingness to travel, shop, eat out, and attend recreational activities. Nevertheless, the delta option provided economic growth in July-September up to 2% per annum and sharply slowed down hiring.

Recent economic indicators have created an encouraging picture. After several rounds of stimulus checks and other government support payments, Americans as a whole have amassed $ 2.5 trillion more in savings than they had before the pandemic. As this money is spent, it is likely to fuel further economic activity.

The Board Conference, a business research group, reported that in the October survey of consumer confidence, the proportion of Americans who said they planned to buy cars, homes, or large appliances rose. And nearly half of respondents said they were planning a vacation in the next six months – the highest since February 2020, before COVID-19 tore apart the economy.

However, some companies say they still cannot find enough workers to fill vacancies. Many parents, especially mothers, did not return to work after leaving work during the pandemic to look after children or other relatives. Contrary to some predictions, the expiration of the $ 300 per week federal unemployment bonus has not prompted more people to look for work. About 5 million fewer people now have jobs than they did before the pandemic.

Most economists hope that with vaccinations to help suppress the delta wave, more people will seek and find work because they no longer get sick and care for those who are sick, or because they are no longer afraid of being infected. Due to these health problems, more people were stopped in September than in previous months.

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American workers, who now enjoy more power in the labor market than they have in recent decades, are receiving substantial wage increases. Bringing in higher incomes can encourage more people to leave and look for work again. Wages in July-September jumped the most in 20 years compared to last year. Most of that income, however, went to already employed people who quit their jobs: the number of people quitting, mostly to take up new jobs, reached record levels.

Rising inflation, however, has largely undermined the value of these wage increases and has become the most serious obstacle to the US economy. Higher costs for food, heating oil, rents and furniture have become an onerous burden for millions of families. Prices rose 4.4% in September from 12 months earlier, the steepest rise in three decades.

This spike in inflation was the key reason the Federal Reserve announced this week that it would begin to phase out the stimulus it provided to the economy after last year’s pandemic recession. The Fed will do this by cutting monthly bond purchases, which were designed to contain long-term interest rates in order to stimulate borrowing and spending.
Chairman Jerome Powell suggested that it will not be possible to get a clear picture of the state of the labor market until the impact of COVID-19 diminishes, which could take months.

However, in the meantime, there are many signs that the economy is recovering: the number of people applying for unemployment benefits for the first time fell for the fifth consecutive week to a level almost as low as the number of jobless claims before the pandemic. 20 months ago.

And while recruitment has slowed so far, consumers generally have a solid financial cushion. After several rounds of stimulus checks and other government support payments, Americans as a whole have amassed $ 2.5 trillion more in savings than they had before the pandemic. As this money is spent, it is likely to fuel further economic activity.

Nation World News Desk
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