Business & Investment

Weak work reports show the need for large-scale work and family bills, says Biden.

President Joe Biden speaks on May 7, 2021 about the April employment report from the East Room of the White House in Washington, USA.

Jonathan Ernst | Reuters

From Washington-Friday President Joe Biden said that April’s lower-than-expected job growth was that the U.S. economy was still struggling to recover from the Covid-19 pandemic, and that his massive He said it shows that infrastructure and family support bills are needed more than ever.

“This month’s job numbers show that we’re on the right track,” Biden said. “But there is still a long way to go. My laser focus is on the growth of the country’s economy and job creation. My laser focus is on vaccination and my laser focus is on another thing. Yes, it’s about securing diligent people in this country. You won’t be left behind in the cold anymore. “

Employment slowed dramatically in April, non-farm payrolls increased much less than expected, and the unemployment rate rose to 6.1% as the shortage of available workers worsened.

Dow Jones estimates that there were 1 million new jobs and a 5.8% unemployment rate.

Many economists were hoping for more jobs as the US economy was showing signs of rejuvenation.

Biden said the slow pace of recovery helped refute critics of the administration’s previous Covid relief efforts.

“Some critics said there was no need for an American bailout plan that the economy would only heal itself. Today’s report emphasizes how important the actions we are taking are. The climb is steep and there is still a long way to go. “

Lower-than-expected job growth could reinforce the Biden administration’s congressional debate that the president’s $ 4 trillion employment and family planning is needed to help the U.S. economy fully recover from the pandemic There is sex.

Biden’s infrastructure bill, called the US Employment Plan, will spend $ 2.3 trillion on rebuilding the country’s transportation infrastructure and create millions of jobs for non-university workers.

The second part of his national agenda, the American Families Plan, is a universal pre-kindergarten fund that provides free community colleges for all Americans and subsidizes childcare, among other proposals. Dedicate an additional $ 1.8 trillion.

Biden will fund the economic recovery package by raising corporate tax rates, raising taxes on the very wealthy, closing loopholes and strengthening IRS enforcement.

The president wants to win bipartisan support for the bill, but Republicans in Congress have already said the tax increase is the red line they refuse to cross.

However, negotiations are underway and a group of Republican senators are expected to visit the White House in the coming days to meet with the president on areas of potential compromise.

Discussion of labor shortage

The weak recovery in employment also reflects the fact that many economists say there is a labor shortage across multiple sectors.

“I think this is as labor shortage as it is,” Jason Furman, an economist at Harvard University and former Obama administration adviser, told CNBC. “Looking at April, it seems that there are about 1.1 unemployed people per job, so there are a lot of jobs there, but there is still not much labor supply.”

Republicans and some employers have accused the labor shortage of being overly generous unemployment benefits approved by Congress as part of an extensive pandemic bailout package.

Specifically, it points out a federal unemployment bonus of $ 300 a week that is more than the state offers. It will expire in September.

Republican Senator Marco Rubio said on Friday, “In Florida, you hear from small businesses every day that they can’t hire people because the government pays them not to get back to work. I told you. “

Biden rejected the argument. “Today’s report is a counter-argument to the loose story that Americans just don’t want to work,” he said.

“This report shows that there is a much bigger problem: we still have 8 million fewer jobs in our economy than when this pandemic began.”

The president also said that the impact of UI benefits on the labor market was “nothing measurable.”

Census data from the last few weeks show that millions of Americans are at home to care for their children and supervise online learning due to day care and ongoing school closures. It suggests that he was forced to.

According to the census household pulse Survey conducted in late March, 6.3 million people reported that they were not working because they needed to take care of their children who were not in school or day care centers. An additional 2.1 million people were caring for the elderly.

An additional 4.1 million Americans said they were not working due to concerns about the availability or spread of Covid-19.

— Jeff Cox of CNBC contributed to this report.

Weak work reports show the need for large-scale work and family bills, says Biden.

https://www.cnbc.com/2021/05/07/weak-jobs-report-shows-the-need-for-massive-jobs-and-families-bills-biden-says.html Weak work reports show the need for large-scale work and family bills, says Biden.

Back to top button