Friday, April 02, 2021
Vaccination campaign and help
US job market attracts the “seven mile boots”
The largest economy in the world is starting the engine again. More than 900,000 jobs will be created in March. And thanks to the vaccination policy, the million mark is within reach in the near future. This could mean that the Fed’s policy needs to be corrected. But it will still take some time until full employment.
In the USA, the situation on the labor market improved more than expected in March thanks to the vaccination campaign and the government’s corona aid. This underpins expectations of an upswing in the world’s largest economy. The government in Washington announced that 916,000 jobs were created outside of agriculture. This is the biggest increase since August. Economists had expected 647,000 jobs – after a revised 468,000 job increase in February. The unemployment rate found in a separate survey was 6.0 percent in March, compared with 6.2 in February. Tens of millions of jobs were lost in the United States in the pandemic crisis.
The infection process is relatively well under control in the USA, public life is returning to a kind of normality, which is reflected in the job structure, wrote Thomas Gitzel, chief economist of the VP Bank Group in an analysis. The US government wants to give the citizens a normal summer with their huge vaccination campaign.
“It is already clear that there will be a massive increase in jobs over the summer months. The positive trend on the US labor market will not only continue, it will accelerate. Monthly job increases well above the million mark are then easily possible. “
“The job market has put on seven-league boots and exceeded expectations by a great deal,” said Alexander Krüger, chief economist at Bankhaus Lampe, commenting on the data. “This shows what is possible when the economy is about to break out of the corona stranglehold. Not least because of vaccination successes and tax checks, further increases in employment are in the pipeline.
Despite the sharp rise in employment, there are still millions of jobs missing that have been lost due to the corona pandemic. If the labor market keeps its seven-league boots, speculation about an earlier Fed exit from aid is likely to increase, he said.
Biden wants first vaccinations for everyone by the end of the month
Almost 1.7 million jobs were cut in March alone. Economists estimate it could take at least two years to recreate the more than 22 million jobs lost in the pandemic. For the second and third quarters, economists expect average employment growth of at least 700,000 jobs per month.
According to Fed Chairman Jerome Powell, the return to full employment is no longer expected this year. However, the vaccination campaign that has gained momentum in the USA gives rise to hope for a gradual economic recovery. According to US President Joe Biden, 90 percent of adults can get their vaccinations by April 19. This applies to the remaining ten percent until May 1.