Washington: America witnessed the number of Americans applying themselves for benefits of unemployment falling by 14,000 to 385,000 last week. This was more like a piece of evidence that depicted how the job market and economy are actively bouncing back from the covid crisis. Also, on Thursday, it was reported by the Labor Department that a proxy for layoffs was dropped last week from 399,000 being revised.

Comparison of the number of applications with this year and last year:

In early January, because of topping 900,000, the applications have fallen more or less but steadily and consistently. Before the pandemic, it was reported that there were at least 222,000 applications in a week; this is a applications report from the United States during March 2020.

The comeback of the US economy

Due to the introduction of vaccines, it is said that the US economy has bounced back to normal in the business sector. The rollout of vaccines has encouraged people to start, continue, reopen and re-operate their firms, business, restaurants, shops, hotels, bars, and so on. According to the economists’ survey by a data firm known as ‘FactSet,’ the Labor Department shared the recent jobs report, which has more than 863,000 jobs the last month. Also, the United States has added more than 540,000 jobs in a month this year.

Role of companies in building the economy of the US after pandemic:

Despite the US offering several jobs and working on the same, the economy is facing a shortage of 6.8 million jobs since February 2020.

In addition to this, there are job openings posted by the companies; it is seen that there are 9.2 million job openings posted, and also, the applicants are faster in filling them.

Covid-19 and the US economy:

The pandemic started almost two years ago, but people are not able to get rid of them. In addition to all these problems, people are now introduced to highly infectible and contagious delta variants, especially targeting unvaccinated people. The pandemic has hit the US economy in the wrong way. The United States is reported with an average of nearly 70,000 cases every day. However, the cases have eventually increased because of the delta variants, as there were less than 12,000 cases in a day during June.

Opinion of Contingent Macro Advisors on unemployment and joblessness:

On a research note, Contingent Macro Advisors shared a piece of their opinion that the increase in Covid cases because of delta variant will cause a high rise in joblessness; Also, there are a few shutdowns of companies, firms, bars, restaurants, bars, etc., going on already.