‘It could take more than a year to get out of the total jobs deficit’

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“‘If you count how many jobs could have been created if the recession hadn’t hit … we are now 11 million short of jobs since February.’ ”- Elise Gould, Senior Economist at the Institute for Economic Policy

The United States added 916,000 jobs in March, beating most economists’ forecast and signaling a strengthening economy as companies eased restrictions aided by the launch of the vaccine, warmer weather and a decline in infections. by coronavirus. President Joe Biden‘s $ 1.9 trillion US bailout package, which allocated $ 1.4 billion stimulus checks to millions of households, also helped inject more life into the economy.

It‘s the strongest job growth the country has seen since the initial recovery faded last summer, said Elise Gould, a senior economist at the Institute for Economic Policy, a progressive think tank. “Even with these advances, the labor market is still down 8.4 million jobs from its pre-pandemic level in February 2020. Additionally, thousands of jobs would have been added each month over the past year without the pandemic recession. ” The official unemployment rate fell to 6% from 6.2%, the Labor Department said on Friday. Many economists were delighted with the news. “There is finally real light at the end of the tunnel,” said Paul Ashworth, Capital Economics chief economist for the United States. However, this does not represent the nearly 4 million people who lost their jobs in 2020 and left the workforce. Taking that into account, economists say that the true unemployment rate is above 9%. “If we count how many jobs could have been created if the recession hadn’t hit, consider the average job growth (202,000) over the 12 months before the recession, we now have 11 million jobs short since February,” Gould said. . “Even at this rate, it could take more than a year to close the overall job shortfall.

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President Joe Biden’s American bailout package helped inject more life into the American economy. Photo by Chip Somodevilla / Getty Images

See also: The Moneyist: the ethics and etiquette of your financial affairs “However, today’s number is certainly a promising sign for recovery, especially as vaccines and vital supplies in the American Rescue Plan have increased. continued to increase from the March baseline period to today’s data, “added Gould. “ARP benefits will continue to be captured in the coming months.” The biggest job gains came in the sector hardest hit by restrictions introduced due to the COVID-19 pandemic: jobs in leisure and hospitality increased by 280,000 in March, the government said on Friday. Still, employment in leisure and hospitality, the lowest-paid sector of the US economy, continues to drop 3.1 million jobs since February 2020, according to the EPI. The Dow Jones Industrial Average DJIA, + 0.52% ended slightly lower on Thursday, while the S&P 500 SPX, + 1.18% and Nasdaq Composite COMP, + 1.76% closed in positive territory, with technology stocks driving a recovery in the first quarter of equities; US markets are closed due to the Good Friday holiday. Currently, the BioNTech SE BNTX two-shot vaccine, + 4.29% and Pfizer PFE, + 0.19%, another Moderna MRNA two-shot vaccine, + 1.22%, and Johnson & Johnson JNJ, -0.92% of a single vaccine injection are available in the US market. Dr. Anthony Fauci, director of the National Institute of Allergy and Infectious Diseases and chief medical adviser to President Joe Biden, told Reuters that the AstraZeneca AZN vaccine, -0.38% COVID-19, has been affected by related problems With possible side effects from its deployment in Europe, it may not even be necessary in the US “As it becomes safe to reopen, I expect many more workers to return to the labor market in search of employment,” added EPI’s Gould. “The unemployment rate for blacks improved last month, but remains at 9.6%, much higher than that of any other group. Long-term unemployment continued to rise in March, with 4.2 million workers unemployed for 27 weeks or more ”.