The recent government stimulus for small and medium-sized businesses, personal stimulus checks, and declining Coronavirus cases, are all great news for the U.S. economy. The latest reports from Wall Street analysts indicate that job hiring is on the rise, and the worst of the pandemic is likely behind us.
With new vaccine rollouts and an intention to inoculate most of the population this year, some small sense of normality could return to retail, service sectors, and the investment markets.
March Hiring Report Likely to Be Very Positive
According to Wall Street projections, the March jobs report, due to release this Friday, will include more than 600,000 new jobs added to the economy. The increase is expected to be the biggest since before the winter.
Job growth is expected because consumers and businesses are showing more confidence.
- Businesses received direct assistance in the recent stimulus deal. Small and medium-sized companies can once again take advantage of the Paycheck Protection Program. Restaurants, airlines, hotels, and other service-focused businesses were able to expand their operating hours last month.
- Consumers are also more confident. Recent stimulus checks put money directly back into the economy. With more jobs being created, families will have more flexibility to start spending again.
These two factors are linked. As businesses perform better, they’re more likely to hire back the staff that they shed during the height of the Coronavirus Pandemic. In turn, as people return to work, they will be more willing to spend their earnings in the economy.
Of course, the growth won’t be rapid. There’s still a discrepancy of millions of jobs that still haven’t returned from last year. However, any small steps will benefit America’s bottom line.
Unemployment Expected to Decline Throughout the Year
New jobs are expected to push the jobless rate down to 6% when the March data is released. Up to 10 million jobs are still missing from the economy, and some may not return as businesses have embraced digital commerce or closed altogether.
The jobless rate was at a record low of 3.5% before the Coronavirus Pandemic, which is an indicator of just how far we have to go before things return to how they were. In any case, job growth, even of a few hundred thousand, will directly benefit many Americans, while also strengthening confidence in stocks, bonds, funds, and other investments.
You may be interested
Fed Could Maintain 0% Interest Rate Until 2024Adam R - March 26, 2021
The Federal Reserve is holding its target interest rate in a range of 0.00% - 0.25%, even while the economy…
Supply Constraints Could Slow the Home MarketBecky H - March 25, 2021
Low inventory has been a constant in the home market for more than a year. The supply of existing and…