End of job benefits in June could mark start of U.S. recovery – Baltimore, Maryland

Baltimore, Maryland 2021-06-10 14:42:23 –

Washington DC: Approximately 14 months after Covid’s blockade, the U.S. could take a major step towards a June economic recovery, ending unemployment benefits, returning full capacity of bars, restaurants and sporting events, And the planned return autumn school.

California, the largest state economy, will also end Covid’s restrictions on June 15.

In addition, on June 15, the Federal Reserve Board of Governors will begin discussions on the best way to move from crisis-fighting monetary policy to managing long-term economic expansion.

Despite the harm to the economy, expert forecasts show record numbers this year, including the fastest growth of GDP annually in almost 40 years.

To date, more than 60% of people over the age of 12 have been vaccinated at least once in the United States. In addition, while the rate of new infections and deaths has declined, confidence in travel and socialization continues to grow.

However, there are still problems. In May, 559,000 jobs were filled in the United States, with a shortage of 7.6 million in early 2020. In addition, the labor force is 3.5 million less than before the pandemic.

Also, due to a shortage of supplies, workers and raw materials, the business is not expanding as expected.

It has been pointed out that stimulus payments and low interest rates have previously caused soaring home selling prices, home construction and timber prices. However, building material prices and other commodities are beginning to fall, as evidenced by a 24% drop in timber futures from its peak and a 5% drop in copper and aluminum.

Authorities say that by July 10, half of the states will stop issuing additional unemployment benefits and the program will expire nationwide on September 4.

Gregory Dako, chief US economist at Oxford Economics, said June would begin a “summer boom in which demand remains strong and labor and capital supply problems are being resolved,” according to Reuters. .. “There is evidence that supply bottlenecks are gradually mitigating … In terms of labor, the risk of viruses is reduced, benefits are reduced, childcare is improved, and people are pulled back.”

End of job benefits in June could mark start of U.S. recovery Source link End of job benefits in June could mark start of U.S. recovery

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