The U.S. economy gained a disappointing 266,000 jobs last month, despite widespread forecasts that predicted a number that would top 1 million, according to the latest monthly employment report from the Bureau of Labor Statistics.
The unemployment rate rose from 6 percent to 6.1 percent, contrary to expectations but still down from a historic peak of 14.8 percent last April, the highest level since the Great Depression.
The highly anticipated monthly jobs report was expected to show strong payroll growth, with some analysts even predicting job gains beyond the 2 million mark, after widespread vaccinations spurred Americans to dine out, take vacations, and venture out to stores after months of restrictive measures.
Widespread vaccination has been powering a return to normalcy, with more than 107 million people in the U.S. now fully vaccinated, according to data tracking by NBC News. That has led to consumer confidence that is propelling the spending surge, as stores, bars and restaurants increase capacity.
The Centers for Disease Control and Prevention said Wednesday that the U.S. could be through the worst of the Covid-19 pandemic by July, if vaccinations continue at high rates and people wear masks and physically distance when necessary.
Some economists and employers say President Joe Biden’s relief package, which included stimulus checks as well as extended pandemic benefits for the unemployed, is deterring some workers from returning to their old job or seeking out a new position, resulting in worker shortages.
Combined unemployment benefits can equal $600 a week, or about $16 per hour, more than many of the entry-level jobs pay. Some businesses have even resorted to offering cash signing bonuses in order to attract workers.
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Other economists say the special pandemic payments have been necessary to keep food on the table for workers who have to stay home to help their children with remote schooling, or due to lingering concerns about contracting the virus.
Overall, around 16 million people are still claiming unemployment benefits — and 12 million of those unemployed workers are on federal pandemic emergency programs, which expire in September.
“The healing of the job market, including reduction of unemployed and those seeking and receiving jobless aid, is as important an economic thread as any being monitored amid the reopening story,” said Mark Hamrick, senior economic analyst at Bankrate. “Yes, there’s a great deal of uncertainty associated with all of this, but that must be viewed within the context of improvement overall.”
Source: | This article originally belongs to Nbcnews.com
