The US was able to give 235,000 jobs to new hires by August, which is a relatively good number if it wasn’t considering the 700,000 job openings predicted by economists for the month.
This number is reportedly the worst drop in employment rates since January. As of now, this widespread joblessness has put dining and travel rates down, despite the expected rise because of the summer season.
The cause for this rate, of course, is the steadily surging Delta variant which has brought up the United States’ positive COVID-19 cases to 40,110,877 with 654,092 deaths.
Research shows that the unemployment due to the pandemic did not only hurt the economy as a whole but marginalized, low-income individuals and families all across the nation too.
“The COVID-19 pandemic has impacted demographic groups disparately,” the Congressional Research Service reports. “Although all demographic groups were affected, persons identifying as Black or Hispanic and younger workers generally experienced relatively high peaks in unemployment and relatively steep declines in labor force participation over the course of the pandemic.
Additionally, persons with lower educational attainment have generally experienced relatively higher unemployment rates and lower labor force participation throughout the pandemic.”
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The Federal Reserve is currently looking into its pandemic measures and strategizes how it would follow through with these new changes.
According to Federal Reserve Chair Jerome Powell, Fed officials agreed they should begin to taper their $120 billion-a-month bond-buying program this year.
Although, he also said a change in the labor market in the upcoming months would likely influence their decision.
The Delta surge is also causing many states and local areas to reissue masks and vaccination mandates.
President Joe Biden is expected to address these unemployment issues on Friday after his New Orleans visit, checking the damage left by Hurricane Ida.
For help with unemployment issues, or to apply for unemployment benefits, you may visit this link: Unemployment Help | USAGov