2021-05-07 14:32:43 –
Washington (AP) — President Joe Biden’s promised economic return hit a speed bump on Friday in an April employment report.
Employment reports did not show that the US economy was accelerating positively, as the unemployment rate rose to 6.1% and the US economy seemed to be moving fast. Economists forecast additional employment of about one million last month, and modest employment shows that the $ 1.9 trillion coronavirus bailout package has so far provided a non-uniform boost.
The numbers present Biden with a new challenge at the crucial moment of his presidency. He is convinced that open acceptance of huge government spending will help resolve the country’s public health and financial crisis and raise the political outlook for Democrats for next year’s elections. But disappointed jobs could also bold his critics and increase Republican resistance to the infrastructure package Biden is trying to push through Congress.
In response to the report, Biden sought to alleviate his concerns.
“I knew this was a marathon, not a sprint,” he said. The Pandemic Relief Package was “designed to help us during the year, not 60 days. A year. I never thought everything would work after the first 50 or 60 days. Today, there is increasing evidence that our economy is heading in the right direction, but it is clear that we still have a long way to go. “
Biden’s opponents say the law actually exacerbated the problem in at least one way, increasing unemployment benefits and giving unemployed people a reason to stay home instead of looking for a job.
The president said employment data did not show that. And supporters of his plan can argue that the report shows that more spending is needed to sustain the economy.
It also reminds us that the world’s largest economy rarely completely succumbs to the will of lawmakers, partly due to the shortage of computer chips and timber that is hindering growth.
John Lieber, managing director of political risk advisory and consulting firm Eurasia Group, said the fate of the president’s agenda is how the public will process and understand the April job report in the coming weeks. He said he could depend on it.
“Can the Republicans see this as” what happens when the government gets involved in the economy and ruins things? ” Or does the public see this as a need for more government support? “Lever said. “That’s the discussion next month.”
One clear point beyond the boundaries of the factions was the need for attention in interpretation. One monthly report is subject to change. The three-month average of job growth is still healthy at 524,000.
Michael Strain, an economist at the Conservative American Enterprise Institute, said many companies have been unable to find workers to hire despite increased hourly wages. Strain said he will monitor future reports to see if patterns that could be a nasty sign of Biden’s vision of how to generate growth through government spending apply.
“If the chorus of companies complaining of labor shortages continues to grow and wages continue to rise, it will be tempting to conclude that many of the 8 million jobs currently lost will not come back,” Strain said. .. ..
The US Chamber of Commerce, which represents the company, has blamed Biden’s relatively generous unemployment benefits, which it has expanded as part of its bailout package. The group said checks prevent people from accepting work.
Neil Bradley, Chief Policy Officer of the Chamber of Commerce, said: “According to a chamber of commerce analysis, a $ 300 profit would bring home more unemployment than one in four beneficiaries earned at work.”
Jared Bernstein, a member of the White House Economic Advisers, said companies are having a hard time finding workers, but those concerns are reflected in employment reports. Said he didn’t see. For example, restaurants and bars added 187,000 jobs last month, but workers in that relatively low-wage sector theoretically have the incentive to raise unemployment.
The work report suggested other factors that could strengthen Biden’s agenda. It showed the loss of women who were forced to play the role of caregivers for their children and relatives because of the pandemic. Family demands stopped them from doing outside work.
Last month there was a decline of 165,000 women over the age of 20 who have or are looking for a job. In contrast, men saw an increase of 355,000 in labor force participation.
One way to bring women back could be Biden’s plan to fund childcare, create a national family vacation program, and increase child tax credits until 2025.
“As we start squinting at this data to understand what’s going on, it looks like we need more government to overcome the labor shortage,” said Michael Madwitz, an economist at the Liberal Center for American Progress. I did.
House Speaker Nancy Pelosi cited a “disappointed” employment report as evidence that Biden’s $ 4 trillion agenda must be approved promptly.
“There is clear evidence that the economy is demanding urgent action, and Congress will not discourage or delay providing transformative investment to the people,” said Democratic Parliamentary leaders. It was.
Weak jobs report could spur, slow Biden’s huge money package – Twin Cities Source link Weak jobs report could spur, slow Biden’s huge money package – Twin Cities