Business Growth Drops in US as Virus Cases Surge

This time seems like the only time in US history when hiring was sharply slowing down. Last month, the number dropped dramatically as the states have to deal with a surge in cases of coronavirus.

The Labor Department said that in November, employers added about 245,000 jobs, but that is below many experts’ expectations. The jobless rate declined to 6.7 percent from 6.9 percent a month prior. That might be caused by people stopping looking for job vacancies. The report came along when several programs related to coronavirus cases and employment were set to expire at the end of the month. The program that is set to expire includes some unemployment benefits.

Experts stated that the number is an indicator that the recovery of uncertainty in the economic condition seemed to stall. It also underscores the urgency for Congress to take any action for further stimulus. According to a report in October, job numbers reach 610,000 in the US.

Shepherdson, the chief economist at Pantheon Macroeconomics, stated that job and employment growth had reached its lowest point – let’s put a bottom line on it. The report also suggests that it seems impossible to unlink economic growth and the virus. He also added that the numbers would hopefully increase as the pressure on Congress gets higher.

There are roughly 12 million people who will lose access to several unemployment benefits by the end of 2020 unless the lawmakers sign the additional stimulus. The data came from a recent report conducted by a Left-leaning think tank, the Century Foundation, 

Still, according to the report, more than four million people have lost the unemployment benefits, it found.

Andrew Stettner, a senior in the Century Foundation, stated that it was such an out-of-the-way action of Congress by allowing many workers to be cut off. Stettner also worked on the report.

For instance, Sarah Groome lost her position and her job as an event manager at Major League Soccer in April. This case was caused by disruptions of coronavirus earlier. She also received her last unemployment benefit cheque in October. The 35-year-old’s effort to access the emergency extension related to pandemic has become tangled in authority, even though she has called so many times a day, as her effort to clear up the issue. “I have no income,” said her.

She later found a temporary job as a part-time retailer that could add about USD 100 per week. For paying rent, insurance, and other expenses, she retrieved her savings. She said that she has no idea what she is going to do financially. She already applied to various jobs, maybe over 100 today, but no interview came up. It is horrifying to know nothing about what’s next. On the other hand, around 12 million people in the US would be facing a similar issue soon.

The US regained about half of the jobs lost at this point. However, over 10 million people are unemployed. 40 percent of them have no work for more than six months today, according to the Labor Department. Meanwhile, Americans who are economically inactive are getting higher from time to time.

On the other hand, about 7 million people may need a job but not be included as unemployed since they are not looking for work anymore as reported by Friday’s, recently, officials have rethought about restrictions on activities in some cities. The idea is according to new records of hospitalizations and infections.

The US has reached 14 million infections along with over 274 death cases, as reported by Johns Hopkins University.

Meanwhile, the economy has been painfully slowing down to recover. As the authority restricted support recently, the number of people who come with reports about how their food is not adequate anymore, or difficulty on paying rent and other bills.

James Sullivan, an economic professor, stated that it could lead to a worse economic deprivation unless the authority would take proper yet immediate action soon. Since May, about 7 million Americans have suffered from poverty, many of them are children, and those with no degrees in the university. The government does need to support its people.

Congress took steps to make a possible way to collect up to two years of benefits for those unemployed, after the 2007-2008 financial crisis. However, the eligibility to receive the money will expire after 26 weeks, under normal circumstances.

On the other hand, Republicans and Democrats seem to part ways even though there is no legal proof just yet. Democrats push more money than Republicans offer, which leads to a congressional impasse. On the other hand, a lack of action makes things confusing about whether or not they reach an agreement.

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