The US economy continues to free itself quickly from the harmful effects of the pandemic and is showing a rapidly growing trend.
Unemployment fell to 5.4% in July. This is the lowest level since the Coronavirus spread. In March 2020 it was 4.4% and in April 14.8%.
Nearly one million jobs have been recovered in the past month alone, the Department of Labor reported.
An unexpected and potentially booming economic rebound.
But to extinguish the growing optimism a little, there is the strong growth of infections due to the Delta variant that is spreading in the unvaccinated especially in the states of South, Florida in the lead, at a rate of 1000000 cases per day. At the beginning of the pandemic, when vaccines had not yet been put on the market, infections averaged 11,000 per day. Economic observers therefore fear a further halt to growth due to possible restrictions that the new variant could impose.
In any case, the reopening of schools and the almost normal return of services have pushed the recovery of lost jobs. Hotels and restaurants closed good accounts in July, recovering as many as 327,000 jobs.
Also in schools, 221,000 new jobs have been resumed.
These two industries alone account for over 50% of the jobs created in the biggest job boom since mid-2020.
Thus denied the pessimism of economists who had feared a loss of over 800,000 jobs.
The president of the United States, Joe Biden, wanted, in the face of these data, not to wave too many flags of triumph “My message today is not one of victory but of caution because we still have to defeat the Delta variant to ensure stability for growth. certainly ups and downs along the way while Coronavirus cases will continue to increase for a while. But what is indisputable is that our plan is working, producing results and moving the country forward “.
What is indisputable is that the American economy is traveling strong. However, entrepreneurs complain of increasing difficulties in finding workers. Some blame federal unemployment benefits, which, in addition to regular state benefits, provide $ 300 a week to the unemployed.
“My advice to employers who say they can’t find workers? Pay them more, ”Biden said in late June. And salaries have increased by 4%.
Covid-19 halted 128-month uninterrupted growth leading the country into a brief recession and plunged the US economy into a short but deep recession last spring.
With the lockdown 22 million jobs have been lost but 17 million have been recovered since then. Although 5 million are still missing, experts are only moderately worried as they believe that the variant will be blocked by accelerating vaccinations to the many undecided.
However, the new resurgence of infections has forced some local governments to re-impose the use of masks and other restrictions. In the coming months, we will see what an impact they will have had on the real economy.