Saturday, 06 Feb 2021 09:01 AM MYT
Millions of Americans are experiencing long spells of unemployment and permanent job losses, while others have given up searching for work. President Joe Biden yesterday cited the weak report to push the US Congress to pass a US$1.9 trillion recovery plan amid resistance from Republicans, now worried about the ballooning national debt.
The economy also created 250,000 fewer jobs in the 12 months through March 2020 than previously estimated. The Congressional Budget Office has estimated employment would not return to its pre-pandemic level before 2024. Economists polled by Reuters had forecast payrolls rising by 50,000 jobs in January.
Nearly US$900 billion in additional relief money provided by the government at the end of December and the acceleration in the distribution of vaccines for the virus could lift hiring in the months ahead. In addition, the pace of Covid-19 infections appears to have peaked in early January.