U.S Jobless Rate Could Drop Below 4.1% By The End Of 2021
3/16/2021
712,000
The number of Americans seeking new claims for state unemployment benefits fell to 712,000 in the week ending March 6, the U.S. Labor Department reported. The figure was a decrease of 42,000 from the previous week’s revised level. Meanwhile, continuing claims, which track the aggregate total of Americans applied for unemployment benefits, rose by more than 2 million to 20.1 million. Furthermore, 53 states reported 478,001 workers applied for Pandemic Unemployment Assistance (PUA), a program for the self-employed and gig workers, the report shows. For the week ending February 27, Texas (19,897), Ohio (18,644) and New York (12,316) states saw the largest increases in initial claims, while Missouri (9,878), Wisconsin (2,940) and Michigan (-2,879) states posted the largest decreases.
4.1%
Goldman Sachs predicts that U.S jobless rate could drop below 4.1% by the end of 2021, 3.7% by the end of 2022, 3.4% in 2023 and by 2024, the unemployment rate falls to 3.2%. According to the Bureau of Labor Statistics (BLS), the current U.S. unemployment rate dipped to 6.2%. in February 2021, which is 0.1% less compared to January 2021 and significantly higher than February 2020. Before the pandemic hit, unemployment stood at 3.5% and it is the lowest in more than 50 years. The February 2021 jobs report shows that workers in the mining, quarrying, and oil and gas extraction industry suffered the highest unemployment rate at 1.3% compared to all other sectors in the United States, the report shows.
2.4M
The U.S. Small Business Administration (SBA) has published its newest Paycheck Protection Program (PPP) report on March 7, 2021. This latest version of PPT would be a greater advantage for small businesses to receive support before the program expires on March 31, 2021. According to The Wall Street Journal report, the Small Business Administration had approved 2.4 million PPP loans for more than $156.2 billion after submission from 5,185 participating lenders. The number is an increase of more than 200,000 guarantees since the previous week with an almost $9 billion increase in net dollars approved. Nearly 73.5% of all PPP loans in 2021 (approximately 1.8 million) are for $50,000 — an increase of 0.5 percent week-over-week, the report shows.
7%
For the first time, the U.S set to make a bigger contribution to the global growth of their economy since 2005, reported by the research firm. According to Goldman Sachs Economics, the U.S economy shrank 3.5% last year, the sharpest since World War 2 and is projected to grow about 7% in 2021. Meanwhile, Oxford Economics forecast the world economy to grow around 6% in 2021 and 4.2 percent in 2022. The WSJ reported that U.S. growth will make a sharp rebound in the world economy this year to rise by 5.6% in 2021, having declined by 3.4% in the previous year. OECD forecasts that the U.S economy will be in the highest position by the end of 2022. Comparing with other groups of 20 leading economies, Turkey is the only one in the same position. India is expected to see the largest shortfall. OECD expects the eurozone to grow by 3.9% this year, up from the 3.6% forecast in November, while it expects China’s economy to expand by 7.8%, having previously predicted 8%.
10M
Due to a pandemic situation, many of the U.S women dropped out of their workforce in states, as most of the students started learning from home. Previously the rate of mothers in the labor force would be 18% points lesser than fathers. According to a Peer-reviewed academic journal, from 2019 to 2020, the gap extended by 5 points in states offering mostly remote instruction. As per the dataset on school opening status of thousands of elementary schools across the country, Maryland has a more extensive gap, the fathers’ working probability decreased by 5% points in 2020 where the drop for mothers was 16 points. In previous times about 70% of mothers living with their kids hardly work but after pandemic 45% were not actively working and this number still dropped to 35%. The U.S Census Bureau stated that about 10 million mothers living with their school-age children were unemployed in January.
30,000
The American Airlines and United Airlines withdraw furloughs for almost 30,000 employees who would lose their jobs if key federal payroll funding wasn’t renewed by Congress. The crews even canceled 27,000 furloughs employees after the house has passed its $1.9 trillion Covid-19 relief package which included an extension of the payroll support program. American and United had informed 13,000 and 14,000 employees would be furloughed in April if the payroll funding was included in the CARES act was not renewed. As vaccines are rolled out, passenger volumes remain down nearly 60% compared with this time last year.
0.4%
The U.S. Consumer Price Index (CPI) rose by 0.4% in February from the prior month after an increase of 0.3% in January the U.S. Bureau of Labor Statistics (BLS) reported. From the past 12 months through February the CPI gained 1.7%, the highest increase since February 2020, after climbing 1.4% in the 12 months through January. The index for all items less food and energy push up 1.3 percent over the past 12 months. Among the indexes, that rose up often are used cars and trucks (9.3 %), medical (2.0 %), and shelter (1.5 %). Indexes that dropped over the last 12 months include airline fares (25.6 %), apparel (3.6%), and motor vehicle insurance increased by 2.8%.