In November, the U.S. economy added 245,000 jobs (Bureau of Labor Statistics) while the unemployment rate fell to 6.7%. This figure fell short from many economists projections of 440,000 jobs.
This has been most likely caused by the recent surge of Covid-19 cases across the country. State governors have seriously considered implementing a second shutdown, and many have already placed restrictions on bars and gyms.
"Today’s report is both a wakeup call and a warning," said Nick Bunker, Indeed economic research director. "Coronavirus cases are surging throughout the country and several federal relief programs are set to expire this month. Progress in the labor market has slowed at the worst possible time. We might be optimistic about the spring, but the winter could bring another round of economic pain."
Shutdowns are known to slow down business which may reduce employers desire to hire new workers. Do you all believe we will inevitably experience another nationwide lockdown? And what are the long-term effects of shutdowns on bars, restaurants and the airline industry?
https://www.nbcnews.com/business/economy/u-s-economy-gains-just-245-000-jobs-final-report-n1249983
4 comments:
i am not all that surprised with the minimal job gains in the US seeing as we are having all time highs in the rate of covid cases many business may be preparing for a shutdown or increased regulations and to combat that on their profit margins they are not looking for more employs today
At this rate, I could see there being another nationwide shutdown. However, I believe if it were to happen, it will be after the presidential transition is completed and Biden is officially president. Moreover, with the recent surge in covid cases across the U.S, I do believe that another stimulus package is inbound. As you mentioned, small businesses have been significantly impacted by restrictions imposed on them and if another lockdown were to occur I am uncertain as too how many will be able to survive a year long draught. This is why I believe the next stimulus package that comes out will be geared more towards relief for small businesses rather than individuals themselves, similar to the stimulus Canada introduced recently.
I think if we could have people actually adhere to the mask mandates we wouldn’t need to go into lockdown. Ultimately, the masks slow the spread of the virus significantly which is all we need to bridge the gap between now and the vaccine distribution. I think a lockdown would cause too much hurt to the economy on top of the hurt it is already facing. A lockdown would most likely cause more long-term problems like we saw before with bars, restaurants, and airlines.
I think like, personally, if the vaccines come, like if it is distributed to the majority in the coming time, things will get better and closed get back to normal, it's just how things go from now, whether people does take the vaccine or not that is another question, but getting back to another lockdown or shutdowns is not good for the people and the economy.
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