Analysts at the Reuters survey predict that 647,000 jobs will be created in March. The labor market is now benefiting from the new U.S. government stimulus measures and the rapid pace of corona virus vaccination. The ministry said the number of job creation would be 468 thousand out of the first 379 thousand announced.
Russell Price, an economist at Americanprise Financial Services, predicts that good news will come from the labor market in the coming months. “The United States has the potential to create between half a million and one million jobs in the coming months,” said Edward Moya, an OANDA researcher.
Last March, the U.S. market began to face the effects of the corona virus crisis, which led to the temporary closure of many businesses such as restaurants and bars, losing nearly 1.7 million jobs. A further 20.7 million seats were lost in April.
Although the labor market has since begun to recover, there are still more than eight million jobs that have returned to pre-epidemic levels. Moreover, the unemployment rate is higher than the pre-corona virus levels. Last February it was 3.5 per cent, the lowest in fifty years.
On Wednesday, US President Joe Biden unveiled an ambitious investment plan for more than $ 2 trillion worth of U.S. infrastructure, worth more than $ 43 trillion, which he wants to support in the United States. Already in February, Biden signed a $ 1.9 trillion stimulus package.
Today, Biden described labor market data as good news, reflecting the progress of the vaccine against COVID-19. However, he warned that economic progress could be reversed if the spread of the corona virus spreads again in the United States. “We still have a long way to go,” he said.
The U.S. economy has shrunk by 3.5 percent in the past year from one of the most significant epidemics since 1946. But the central bank forecasts that the country’s GDP will grow by 6.5 percent this year. The world’s largest economy has been experiencing sharp growth since 1984.