The US Labor market won’t recover any time soon

Even though June data from the US Labor market report growth of jobs in almost 5 million, number of Americans who have lost their jobs for good is the largest since 2009 crisis. 

us labor

According to Mark Zandi, main economist at Moody’s Analytics Consulting Services, the coronavirus pandemic undoubtedly caused major losses on the US labor market. “Many workplaces won’t return. The idea that economy will soon return to its pre-pandemic levels is unrealistic,” he said. 

Even though June reports from the US Labor market showed increase of workplace in the overall volume of 4.8 million, it was mainly caused by the fact that many workers appeared in the state of being temporarily dismissed. It concerned mainly workers in stores, hotel, bars and restaurants, which are slowly reopening. 

However, there are currently around 759,000 people without their jobs, which is the most since January 2009 – back then the number exceeded 800,000. According to analysts, the number of unemployed people in the US is roughly 3.7 million people. Their workplaces disappeared permanently and won’t return any time soon. Moreover, millions of people are endangered by the possibility of losing their jobs. The situation might get even worse as numbers of people newly infected by coronavirus have caused second wave of anti-pandemic measures, which will harm the economy. 

 

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