Economists surveyed by Bloomberg prophesied to US President Joe Biden a longer than expected fight against unemployment in the country. According to them, the recovery of the labor market will inevitably face obstacles.
Analysts note that the assistance already provided by the government and the Federal Reserve System (FRS), as well as the planned additional injections of $ 1.9 trillion, are likely to have the desired effect and lead to the recovery of the economy to the pre-crisis level.
According to forecasts, GDP growth in 2021 could reach 7.4 percent, which will be a record since 1983. However, even then, one should not expect a full recovery of the labor market.
The main obstacle, including for the creation of new jobs, will continue to be the service and entertainment sector. There still remain restrictions related to social distance requirements.
The improvement in the labor market, which began at the end of last year, was again stopped due to measures taken by the authorities of different states to combat the spread of the virus.
The $ 1.9 trillion supplementary aid bill is expected to go to Senate hearings in the first week of March. It has previously received approval from the House of Representatives – the lower house of Congress.