The US workforce,
which is reeling from the COVID-19 economic breakdown from almost an year now, may
witness some sign of sustain recovery as unemployment rate in the country is
expected to remain unchanged in February as well, reports AFP.
The Labour Department
data, which gives insights on new jobs added and unemployment recorded in the
country is likely to show 2, 00,000 new jobs being added and unemployment rate
remain static at 6.3%. According to AFP, only 49,000 thousand jobs were
recorded in the US in January.
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The report may also bolster claims that COVID-19 vaccination in the US has triggered economic recovery as the world’s largest economy is ready to experience a mini boom this year. Joe Biden’s stimulus employment response plans are expected to be proven a push in this direction.
However, this does not mean the end of the economic battle for Americans as the Labor Department reported that 745,000 new claims for unemployment benefits
were made last week alone, and more than 18 million people were receiving
government aid as of mid-February.
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Meanwhile, a survey released earlier this week indicated that private sector job growth last month was not as robust as was expected. The survey was conducted by ADP, a payroll services firm.
Federal Reserve
Chair Jerome Powell also raised skepticism around economic boom after he said on Thursday that the US economy will not reach the ‘maximum employment’ this year as labour market has to go a long way to recover from mass layoffs occurred due to pandemic.
Powell also added that the true unemployment rate is higher that seen it appears.
However, the $1.9 trillion COVID-19 relief package proposed by President Joe Biden has reached US Senate on Thursday and is expected to be debated upon in a day or two. The package seeks to keep the world’s largest economy sailing and expand its unemployment safety net.