E US Job Market

“The magnitude of job loss in March and April 2020 had no precedent since the end of World War II. Early in the crisis, many expressed hope that, with government support, employers and employees could quickly return to pre-pandemic employment arrangements. However, as the COVID-19 crisis continues, more employer–employee bonds break, amplifying the economic and societal damage.” (BLS, Employment recovery in the wake of the COVID-19 pandemic, Dec. 2020)

“At the beginning of this recession, unlike earlier recessions, a large majority of unemployed workers expected to be recalled to their jobs, and many were. Such recalls powered a rapid but partial recovery from May through the summer. However, the recovery has now slowed, and many temporary layoffs have become permanent. As the pandemic has continued, employment bonds between employers and their furloughed workers have weakened. The process of matching unemployed workers to new employers is much slower than recalling them to their old jobs. These factors suggest future employment recovery might be slow.” (BLS, Employment recovery in the wake of the COVID-19 pandemic, Dec. 2020)

Even though the US job market outlook is looking a bit brighter because of the expanding vaccine rollout, the fact that there is so much ground to be made up suggests that the case for a strong fiscal stimulus remains quite compelling.

Since the peak of the job market last February, total payroll employment in the US has declined by 9.9 million workers or 6.5%, with 3.9 million, or almost 40%, of the losses centered in the leisure and hospitality sectors. As well, the number of permanent job losers remains at an alarmingly high of 3.5 million, compared with the 2.2 million back in February of 2019.

The US experienced some large-scale job cuts towards the end of last year, and even though the January payroll gain in January was quite modest, nonetheless it could be foreshadowing a stronger job market ahead since the vaccine rollout is quickening.

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William K. 2 weeks ago Member's comment

The indiscriminate and random flinging of huge amounts of cash is seldom a wise choice, but typical of the liberal mindset. The results in the past have always been the same, with a huge burden of debt placed on the backs of those not yet born, and rampant inflation devouring the assets of the many who are unable to magicly increase their incomes. The painful reality is that inflation damages a whole lot of people quite a lot, while profiting those who least need the benefit.

Unfortunately none of the included images appear in my copy of this post, nor the captions.

But thanks for some interesting data.