Fri. Mar 5th, 2021

By Christopher Rugber, AP Economics Writer

WASHINGTON (AP) – US employers added just 49,000 jobs in January, a good gain indicating that the viral epidemic maintains a tight grip in the economy for nearly a year after it was released.

Last month’s slight increase was followed by a sharp decline of 227,000 jobs in December, the first loss since April in the United States after coronavirus. The Labor Department said the unemployment rate for January dropped from 6.7% to 6.3%. Most of the decline in unemployment occurred because some people were put out of work, while others stopped looking for work and were no longer considered unemployed.

The Labor Department’s January figures reflect a staggering employment market, which is slowed by an epidemic that still engages consumers in travel, shopping, eating out, going to entertainment spots and other forms of face contact. Is saving In its Friday report, the government jointly reduced its job estimate for November and December to 159,000. The epidemic lost about 10 million jobs.

Last month, the service industry that treats customers posted millions of homegrown consumers as hunk again as the fastest job loss. Within the service sector, restaurants, bars and hotels destroyed 61,000 jobs. Retailers cut by about 38,000. Employment in transportation and warehousing fell by 28,000.

Since the job market collapse in the spring, women who have been disgruntled are often out of work to take care of school-going children from home. This pattern continued in January. At the same time, the number of men with jobs increased last month.

As hiring has slowed, layoffs have continued to increase. Last week, the number of applications for unemployment benefits, though declining for the past few weeks, topped 779,000.

The president, who has endured the sufferings of millions of Americans, has led President Joe Biden to a $ 1.9 trillion rescue aid package that would provide a $ 1,400 check for most American individuals and a $ 400 weekly unemployment payment at the top of the state. The package will expand two federal unemployed assistance programs from mid-September to March.

Anemic jobs data could give Biden’s package more political momentum. Early Friday, the Senate approved a budget measure that would allow Democrats Muscle Biden’s $ 1.9 trillion plan through the chamber without Republican support. The budget measure now returns to the House, where it will be approved on Friday to reflect changes made by the Senate before work on rescue committees begins in congressional committees.

The loss to the job market since March has widened financial inequality in the United States, particularly harming women and people of color. At the same time, Americans have fortunately saved their jobs – $ 2.3 trillion in savings – double the pre-epidemic. That wide pool of savings can quickly rebound in spending as business restrictions are lifted and more Americans become more confident about shopping, dining and travel.

Economists increasingly suggest that as vaccination reaches a critical mass in the coming months and the government provides further stimulus, the economy and job market will strengthen much faster than in the aftermath of the previous recession. Bank of America estimates that growth could reach 6% this year, the fastest since 1984.

There have been some signs of hope recently which suggest that the economy may grow slightly. Auto sales picked up in January. And one gauge of business growth in the services sector reached its highest level in two years. It is also revealed that service firms have added workers in the past month. A different measure of manufacturing indicated that factories are also expanding. So is spending on building the house.

Some states and localities banned businesses in December as cases increased. Some of those restrictions were loosened in January, though perhaps not the time to affect the jobs report, which measures employment in the middle of each month.

Copyright 2021 associated Press. All rights reserved. This content may not be published, broadcast, rewritten or redistributed.

Source link

Leave a Reply

Your email address will not be published. Required fields are marked *