President Joe Biden praised the vitality of the labor market in the United States during July and viewed it as a success for the proposed recovery plan, urging Americans to continue getting vaccinated against the threat posed by the Delta variant. The U.S. President, speaking from the White House and commenting on a highly anticipated report that serves as a real indicator of the recovery of the U.S. economy, said, "Biden's plan is working successfully." Approximately one million jobs (943,000) were created last month, while unemployment declined for the second consecutive month to 5.4%.
The summer season, which typically sees people going out, socializing, and taking vacations, has allowed bars, restaurants, hotels, and amusement parks to thrive after a rapid vaccination campaign in the spring. However, Biden emphasized that "our economy still needs a larger recovery," anticipating "upcoming fluctuations as we continue to combat the rise in COVID cases with the Delta variant." He urged Americans to get vaccinated.
The labor market is one of President Biden's priorities, and he is relying on two wide-ranging investment plans to ensure a lasting economic recovery. The first plan includes infrastructure and may be voted on by the Senate over the current weekend. However, it requires a second approval in the Senate and then in the House of Representatives before it can be finalized for Biden’s endorsement.
**School Reopening**
Despite these new numbers, the U.S. economy still requires support to continue its recovery from the consequences of the COVID-19 pandemic. Job opportunities remain below by 5.7 million jobs compared to February 2020, before the pandemic when strict lockdown measures led to the dismissal of over 20 million people. The Delta variant, which particularly affects unvaccinated individuals, looms as a significant threat, as many Americans remain hesitant to get vaccinated.
Rubella Farooqi, Chief Economist at High Frequency Economics, stated, "The pace of job growth has accelerated despite the risks posed by virus variants." A memorandum raised the possibility that schools may not reopen for in-person learning. The continuation of online education could slow the return to work, especially among women. However, Biden affirmed on Friday that "schools now have all the resources they need to safely reopen for the new school year so every child can return fully to school and safely."
To avoid further shutdowns, companies are announcing one by one that their employees must get vaccinated. In New York, restaurant patrons and employees, along with personnel in gyms, theaters, and concert halls, must have received at least one dose of the vaccine.
The United States is also facing significant disparities, as the unemployment rate among Black individuals and those of Hispanic descent remains much higher than that of white individuals. Furthermore, the labor force participation rate has remained stagnant for months at 61.7%, compared to 63.3% in February 2020. This indicates that many citizens are still not included in the job numbers, as various factors hinder their return, including childcare, lesser availability of public transportation, and the concerns related to the coronavirus.
Employers and political officials have also noted the increased unemployment benefits provided in response to the pandemic, considering that these aids encourage the unemployed to stay at home. More than half of the states have reduced these benefits without waiting for their expiration at the beginning of September. To attract employees, companies have raised wages, which have increased for the fourth consecutive month. The U.S. Federal Reserve is closely monitoring the labor market situation since sufficient progress would mean reducing its support for the economy, which includes slowing the pace of asset purchases and subsequently raising the key interest rates.
