Post-Pandemic Jobs Boom Underway
It’s good news. Unemployment claims declined to the lowest level since the coronavirus pandemic struck last spring. The bad news is while applications for unemployment benefits have fallen this year, they remain historically high.
The incredibly efficient rollout of the Covid-19 vaccination program by the Biden Administration, which is administrating over 3 million shots a day, appears to be having a profoundly positive effect on the U.S. economy. As a result is sending the Dow Jones, S&P and Nasdaq U.S. stock market indexes to new highs.
The Wall Street Journal (WSJ) concurs with the bullish reversal that appears to be underway writing this morning…
“Jobless claims, a proxy for layoffs, fell to 576,000 last week from 769,000 a week earlier. That is the lowest weekly figure since March 2020. Claims remain higher than the pre-pandemic levels of around 220,000, but economists expect they will continue to drop as the recovery accelerates.”
The WSJ Kathy Bostjancic, an economist at Oxford Economics as saying…
“We are seeing both a strong reopening and rehiring in the economy at this time,”
“It’s been faster than most economists expected.”
While the vaccination blitz underway is helping the bounce back in the labor market and boosting the U.S. economy. The Vaccination rates also power consumer spending, allowing local and state governments to relax restrictions on businesses; the federal-stimulus funds that have been flowing through the economy are also having a tremendously powerful positive effect.
According to the Department of Labor, U.S. employers added 916,000 jobs in March, and the jobless rate edged down to 6%, from 6.2% in February.
Beyond the improving employment picture, the Commerce Department reported Thursday that consumers are spending more on gyms, restaurants, hotels and other services that they had shunned over the past year. U.S. retail sales surged 9.8% in March from the month before, the most significant monthly gain since last May.
The massive unemployment caused by the Covid-19 pandemic has caused jobless claims to be especially choppy during the lead up to and during the height of the Covid-19 pandemic. In fact, the demand for unemployment benefits has been so intense at times during the last 12 months that states have struggled to process the historically high numbers of claims, which created backlogs that have taken months to resolve. The situation has been made worse as states have also struggled with unemployment insurance fraud claims, distorting weekly claims counts.
Strong jobs report offers signs of hope for an economic recovery