The COVID-19 pandemic has created a negative impact on unemployment. The situation in the US has made the government initiate aid to small businesses and individuals.
Jobs in the US are difficult to get as the year begins
Job application has declined further, a situation that is a source of worry according to economy experts. This is the first time it has happened since May 2020. Many employers discarded about 150,000 staff positions, which changed the unemployment rate to 6.8%.
The key sectors affected by this job loss are the hospitality sections which include, bars, eateries, and hotels. This comes as fresh restrictions in certain public places. Also, there have been tough weather conditions which have affected eating outdoors.
This figure shows that economic recovery in the US is very bleak. Before, we have gotten back about half of the 25 million positions which it lost due to the covid-19 lockdowns. However, nearly 12 million individuals remain out of a job, while eight million more prefer to work but are dissatisfied or not available due to personal reasons according to the labor department.
Labour department expects the trend to continue for now
Furthermore, the US labor department said that there are signs of job gains in September, October, and November; this doesn’t have an impact in January 2021. Also, accompanying this report are statistics showing consumer spending and confidence has reduced greatly, although vaccine development should bring more hope to unemployment.
A top official at Employ America, Elizabeth Pancotti said this is not the recovery expected and that things are not getting better in the job market. Various financial and economic experts have stated that unemployment improvement in other industries aside from leisure and entertainment will improve.
After wasting time debating COVID-19 aid, the US government has announced a $900 billion fund which includes benefits to the unemployed and aid to small businesses.