(ReliableNews.org) – The nation faces several issues as it tries to reopen its economy in the wake of more than a year of restrictions due to the COVID-19 pandemic. Labor statistics are particularly concerning after April’s jobs report showed a rise in the unemployment rate. Conservatives attribute the loss of jobs to government handouts. Meanwhile, Biden administration officials are attempting to downplay the upcoming May jobs report.
Both the Federal Reserve and the Dallas Fed report that hiring problems throughout May will likely lead to another dismal jobs report when May’s figures are released next month.
Texas Employment Forecast: Using a top-down model based on national forecasts, COVID-19 hospitalizations and oil futures prices, the Texas Employment Forecast estimates job growth will increase by 6.6% in 2021—unchanged from last month’s estimate. https://t.co/xUEwFqKQZN
— Dallas Fed (@DallasFed) May 21, 2021
Dallas Federal Reserve President Robert Kaplan attributes the gloomy jobs reports to “structural issues” like ongoing unemployment benefits. That’s consistent with a recent estimate by the US Chamber of Commerce’s president that about 25% of individuals receiving the Biden administration’s $300 supplemental unemployment benefit payment make more money staying at home than returning to work.
CBS News reported on May 21 that at least 22 Republican governors are ending extended unemployment benefits the next few weeks to get people back to work. Companies desperately need workers!
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