Business & Investment

Even if millions lose their unemployment benefits, US jobs won’t come back soon

at least 6.5 million people have been separated from federal unemployment benefits In September, but don’t expect most of them to rush back to the US workforce looking for a job.

According to a survey by economists, hiring in September seems to have been slightly faster in the United States after a significant increase in 235,000 new jobs in August.Wall street
DJIA,
-1.10%

We anticipate an increase in new employment of approximately 500,000 people.

But most companies say it’s not easy to find someone to hire, even if they offer higher wages. There are a record number of jobs in the United States, which are not immediately filled.

Employment report released next Friday, highlights Busy US economic calendar.

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Some amazing labor shortages have become one of the biggest constraints on economic recovery. The number of workers is still below pre-crisis levels by 5 million — and it does not count the millions more jobs that would probably have been created without a pandemic at all.

According to economists, what helps in September is that most schools will resume in-class learning. This allowed more parents to return to work.

But why don’t more people get back to work?

Up to millions have retired early. For one thing, the fast-growing stock market has made decisions easier. It is unknown how many people will come back when the pandemic disappears.

Others say they have enough money to get through for a while or they have a spouse who can trust their income, research shows. The more generous government interests have also made it easier for some people to stay home.

read: The Fed is betting on a low-inflation future.This is something that may not work

Most of these people will probably return to the workforce, eventually most economists insist. However, some wonder if there is a permanent change in the workforce and eventually fewer people work.

“Many people are thinking about these issues,” said President Rahael Bostic of the Atlanta Federal Reserve in response to a question from MarketWatch. He said the labor market is currently in a state of “chaos.”

Many companies raise wages and increase benefits to seduce workers, but that alone may not be enough to get them back to work. Some may still be afraid of the coronavirus, while others may look for another job.

Take a former employee of a restaurant, hotel, or other company that deals directly with a customer. Some people do not want to be exposed to humans to limit their chances of getting a virus.

Not surprisingly, leisure and hospitality employment fell to zero in August during the “Delta” coronavirus outbreak.

But even companies with little or no customer contact struggle to find qualified workers. For example, a new survey of manufacturing executives showed that employment was shrinking in September.

“The business level remains very strong, but we’re having a hard time finding employees,” said a senior executive at a company that manufactures the primary metals used in a range of products.

Until more people join the workforce, economists say the US growth cap will face more stringent limits and will drive a recovery.

Even if millions lose their unemployment benefits, US jobs won’t come back soon

http://www.marketwatch.com/news/story.asp?guid=%7B20C05575-04D4-B545-768A-65C2F53C79F8%7D&siteid=rss&rss=1 Even if millions lose their unemployment benefits, US jobs won’t come back soon

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