Biden to spend long time dealing with unemployment
US President Joe Biden will have to take a lot of efforts to combat unemployment. The fact is that the lion’s share of ordinary people have to apply for unemployment benefits.
Although at the end of the previous year, the US labor market situation was somehow improving, new restrictive measures imposed in various states have slowed down the recovery. Problems in this sector will surely affect the whole economy. The services and entertainment sectors are the most damaged ones. Businesses still have to obey the social distancing requirements. Judging by other aspects, economists suppose that the White House administration will be able to push the country’s economy to the pre-crisis levels quite fast.
Financial aid provided by the US government and the Federal Reserve has positively influenced economic health. Notably, the additional inflow of $1.9 trillion has also contributed to the economic revival. According to the forecasts, in 2021, the US GDP may jump by 7.4% showing a record rise since 1983. Even in this case, the US labor market will hardly recover fully.