Rescue Package To Impact US Economy As Restrictions Ease
April could be the month in which one million new jobs were created, and the unemployment rate could drop to 5.8% as a result of the White House’s $1.9 trillion COVID-19 rescue package. The reopening of the economy and rapidly improving public health should impact the figures shown in the long-awaited Labor Department report due on May 7.
Following the first wave of lockdowns and non-essential business closures, 20.7 million people lost their jobs twelve months ago, and the industries that suffered the most were leisure and hospitality. What’s more, approximately four million US citizens - primarily women - left the labor force, so the country’s economy has been hard-hit, and many Americans have been facing financial hardship.
The last leg of the rescue package was approved in March and added up to the piled savings of Americans, with their collective “extra” money reaching $2 trillion. This has pushed the US economy further down the road to recovery and given a degree of momentum to the industries still reeling from the pandemic.
According to Reuters, companies rushing to meet a surge in demand will result in 978,000 new nonfarm jobs. April figures seem promising, with job cuts being the lowest in nearly 21 years, in addition to a considerable drop in the number of unemployment-benefits claims.
The recent shortage in the labor force can be partially attributed to people receiving generous unemployment checks, stay-at-home parents, and early retirements due to COVID. With bars, restaurants, and amusement parks reopening across the country, an uptick in hirings is expected in the leisure and hospitality industry. Manufacturing and construction jobs are likely to see an employment spike as well.
Following the job increase, hourly wages will likely remain unchanged after a 0.1% decrease in March, as many of the new jobs will be in the lower-paid sectors.
I have always thought of myself as a writer, but I began my career as a data operator with a large fintech firm. This position proved invaluable for learning how banks and other financial institutions operate. Daily correspondence with banking experts gave me insight into the systems and policies that power the economy. When I got the chance to translate my experience into words, I gladly joined the smart, enthusiastic Fortunly team.
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