Beating the expectations of economists, the unemployment rate has been constantly diminishing from 4.8% to 4.7% and now to 4.6% in October, affirming the right direction.
“America is getting back to work. Our economy is starting to work for more Americans,” President Biden shared at the White House. “Before we passed the Rescue Plan, forecasters said it would take until the end of 2023 to get to 4.6 unemployment rate. Today, we’ve reached that rate two years before forecasters thought it was possible.”
The boom mainly came from the private sector, which showed a more pleasant picture than what we were preparing for. The addition and creation of job even came from the tourism and hospitality sector, as people can now be seen flocking airports as compared to a few months before.
Although things are looking healthier, it is still a part of the ‘new normal’ and the way we work has now changed. Lisa Ericson, Co-Head of the Public Markets Group in U.S. Bank Wealth Management, has observed post-pandemic that, “The reality is we’ve become accustomed to having the opportunity and the ease of being able to do a lot of things at home.
She added that “What the pandemic really did is accelerated and cemented that behavior.” Many workers are now reassessing their life choices.
The productivity has to stay constant, if not increase, as it is what is driving corporations into profit, and if the change in the labor market is seen affecting those levels, an inflationary spiral may be looming around.
Speaking about the recovery, Daniel Zhao, senior economist at Glassdoor.com positively believes that, “The slowdown we’ve seen the last few months has been largely driven by the delta variant. As cases of Covid-19 start to fall, we expect that the recovery will be accelerated,”