U.S. Showing Hiring Gain, Lower Unemployment . . . But For How Long Amidst Pandemic

More work needs to be done to heal the economy despite decline in viral cases, increase in consumer spending, businesses lifting restrictions, and the help of the Biden administration’s $1.9 trillion rescue package. Oxford Economics, a consulting firm, predicts that a total of 8 million jobs will be added this year, reducing the unemployment rate to a low 4.3% by the final three months of 2021.

But some economists say employers will have to offer higher pay to draw more people back into the job market as people — 1.5 million according to Michelle Meyer, economist at Bank of America — are still exercising precautions and are slow in returning to the work-a-day world, if at all.

“It’s really all about what wages will entice or lure people back,” Nela Richardson, chief economist for payroll provider ADP said.

–Ella Breedlove