Society

US Economy After Coronavirus

It has become apparent that the US’s economy isn’t the best it has ever been. According to CNBC, April had less job growth than expected which shows that the US is still having trouble recovering. They state “President Joe Biden said Friday that April’s lower than expected job growth reveals that the U.S. economy is still struggling to recover from the Covid pandemic, and that his massive infrastructure and family support bills are needed now more than ever.” 

The Labor Department reported “that hiring slowed dramatically in April, with nonfarm payrolls increasing by a much less than expected 266,000 and the unemployment rate rose to 6.1% amid an escalating shortage of available workers.” Biden is planning an operation which would help the economy. It aims to open new jobs and repair infrastructure. However, this operation is estimated to cost about 2.3 trillion USD. He is also planning on implementing his American Families Plan which would add another 1.8 trillion USD.

An Obama administrator reported that it isn’t actually a shortage of jobs though. It is actually a shortage of labor. They state “If you look at April, it appears that there were about 1.1 unemployed workers for every job opening. So there are a lot of jobs out there, there is just still not a lot of labor supply.” The Republicans blame this on the overly generous unemployment benefits that were approved by Congress.

According to the Bureau of Labor, “

Among the major worker groups, the unemployment rates for adult men (6.1 percent), adult women
(5.6 percent), teenagers (12.3 percent), Whites (5.3 percent), Blacks (9.7 percent), Asians (5.7 percent),
and Hispanics (7.9 percent) showed little or no change in April.” This is an all time high since the start of the virus outbreak in the US which took place 14 months ago. In April alone, it is described that the number of jobless people have increased from 237,000, all the way to almost 2.5 million.

https://www.cnbc.com/2021/05/07/weak-jobs-report-shows-the-need-for-massive-jobs-and-families-bills-biden-says.html

Categories: Society