The new year unfolds challenges for the U.S. President as the alarming employment report in 2021 is issued.
The Labor Department said in December 2021, the U.S. economy grew just 199,000 jobs, which denies anticipations for a rise of hundreds of thousands of opportunities in the post-pandemic recovery.
The job market might face complicated months ahead as new cases of the virus (Omicron) increase.
The department’s note as the most recent block for Joe Biden, whose “Build Back Better” plan was held up in Congress is accompanied with no ease in price rise.
Analysts believe that in the report there’s sufficient good news to grow interest rates so early as March. However, Omicron might disrupt the situation.
In December, the number of the unemployed in America fell by 483,000 and by 4.5 million across 2021, nearing the rate before the pandemic era. Each month in 2021, 537,000 positions were added on average.
Another household study by Labor Department indicated that in December the number of the employed jumped by 651,000. In the meantime, the U.S. government employment growth reached a higher level in the months of October and November, suggesting 141,000 increases compared to the number reported before.
While market still keeps struggling for vacant positions, the labor force participation rate (61.9 percent) was constant last month, after being idle in most of the year. Labor force participation rate is a metric to estimate working-age people in an economy.
While the president passed 2 spending bills in 2021 in order to tackle the pandemic issue as well as boosting America’s infrastructure, inflation rise caused dissatisfaction. Economists are analyzing the major causes of inflation growth, like salary. The data shows that on average hourly income increased 4.7% in 2021.
To curb the price jump, the Federal Reserve System is poised to increase income rates, possibly 3 times in the new year.