Joe Biden welcomes Joe Biden to jobs that are still at the highest level

Joe Biden welcomes Joe Biden to jobs that are still at the highest level

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U.S. companies continued to increase hiring in April, a job market boost hailed by Joe Biden, who sees in it the fruits of his economic policies.

Despite higher costs due to chronic labor shortages and record inflation, employers have added 428,000 new jobs to the world’s largest economy, particularly in the service, manufacturing and transport sectors, which have been hit hardest by the pandemic. That’s more than the 395,000 jobs expected from an analysts’ consensus, but more in March after a slight downward revision.

95% of the jobs destroyed by the pandemic have been rebuilt

In two years, the US economy has recreated nearly 95% of the 22 million jobs destroyed when the Covid-19 pandemic paralyzed economic activity and plunged the United States into a deep recession in the spring of 2020.

Although there was a bridging of the gap after such an immediate and massive catastrophe as well as a record unemployment rate of 14.7% in April 2020, the Democratic president has taken credit for this recovery. “Our policy measures have created the strongest jobs of our time,” Biden said in a press release. “The fall in unemployment (is) the fastest ever recorded since the beginning of a presidential term,” he added.

Unemployment rate is stable

The unemployment rate remained at 3.6%, close to that of February 2020, shortly before the pandemic spread. At 3.5%, it was then at its lowest level since 1969. In April, the number of unemployed remained “virtually unchanged at 5.9 million”, the ministry said in a press release.

The unemployment rate for blacks or African Americans, on the other hand, fell last month to 5.9% from 6.2% in March, while remaining much higher than that of whites (3.2%, unchanged) and of Hispanics (4.1). %, drop 0.1 points).

Both the percentage of participation in the labor market, at 62.2%, and the percentage of employment-population, at 60.0%, have on the other hand “a little differentiation”, the ministry estimates. Each remains 1.2 percentage points below the February 2020 level.

Labor shortages

For the past year, companies have been facing staff shortages after many pandemics during the pandemic and huge resignations each month to find better working conditions. Gregory Dako, chief economist at EV Parthenon, notes that turnout fell by 0.2 percentage points last month, “to its lowest level in four months”. Thus, the job offer is evolving “in the wrong direction”, he believes.

“While a lower unemployment rate would be excellent, it may not be desirable,” he added in a note. “The paradox is that it would be healthier for the labor market if the unemployment rate stabilized at current levels and labor force participation increased to pre-pandemic levels.” It is based on the creation of more than 4 million jobs this year, with an unemployment rate close to 3.3% by the end of the year.

More than 11 million jobs available

According to another Labor Department survey released this week, there were more than 11 million jobs available in the country in March, a record. “And, the leisure and hospitality sector still has 1.4 million fewer jobs than it did before the crisis,” said Diane Swonk, an economist at Grant Tronton. This delta represents more than 1.2 million jobs missing from the peak of February 2020, he points out.

For the public education sector, more than 300,000 jobs are still missing. “Job burnout and arrears in education do not help recruitment,” he explained.

Wages on the rise, without covering the difference in inflation

In an effort to attract candidates, private sector companies have improved payroll conditions, increased hiring bonuses and are now offering more generous social benefits. This fueled higher wages, which rose 0.3% in April from March. Over the course of a year, they rose 5.5%, a jump that was, however, insufficient to offset record inflation.

“Fighting inflation is a top priority for me,” Biden reiterated, blaming the pandemic and Russia’s invasion of Ukraine for those responsible for worsening inflation. Inflation reached 8.5% in one year in March, according to the CPI index, the highest in forty years.

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