A positive picture is emerging from America’s recent employment report. Last month, more than 9 lakh new jobs were created in the US. This is a fairly strong figure since August. If you look at the data of many private companies including Google, the recovery has started fast after the lockdown in the US. However, the world’s largest economy is far from the peak of the epidemic.
Despite the latest data on jobs, eight million fewer people have returned to jobs than the level before the epidemic. The largest number of people who lost jobs are low-income people and women. A third of small businesses are still closed. Poverty is much higher than the pre-Kovid-19 level, especially in the black community.
The impact on children’s education due to school closures can continue for decades. The government has announced incentive schemes to give a boost to the economy, the effect of which is beginning to be seen. High-frequency data from the private sector are confirming this before the government data came out. Using Google’s mobility data, The Economist has created an index of economic activity. It measures people’s movement at work, at stations, retail outlets, and places of entertainment. The index was 30% below the pre-Kovid baseline a month ago. The index has risen 20% above the baseline in recent times.
Other high-frequency data are also showing a similar trend. For example, the number of passengers at the airport is increasing rapidly. In February, the number of diners at the restaurant was 48% below normal. It is now down by 18%. The hotel business is also growing. Manufacturing and service sector activities are intensifying.
The American economy is getting faster due to vaccination
Due to vaccination, people have started coming out of homes in large numbers. When people go out for a walk, they have a lot of money in their pockets. The government has recently deposited incentives into people’s bank accounts. Its total amount is about 19 lakh crore rupees. Also, billions of dollars could not be spent due to the lockdown. According to JPMorgan Chase, payment card spending has reached the pre-Kovid level.