The US private sector generated 330,000 new jobs last July, the lowest figure since February and almost half that expected by the consensus of analysts, according to the survey carried out by the consultancy ADP.

The 330,000 new jobs created in July contrast with 680,000 in June and 882,000 in May, confirming a sharp slowdown in the pace of job creation in the world’s leading economy after the first months once the restrictions were relieved.

By size, small companies created 91,000 new jobs in July and medium-sized companies 132,000, while large US companies created 106,000 new jobs.

In terms of the sectors, leisure and hospitality generated 139,000 jobs in July, ahead of the 64,000 jobs created in the health sector and education, while the information sector was the only one that destroyed jobs, with the loss of a thousand positions.

“The labor market recovery continues to show uneven progress, but progress nonetheless,” said Nela Richardson, ADP’s chief economist, noting that the slowdown in the recovery affected companies of all sizes.

“Hiring bottlenecks continue to hold back stronger improvements, particularly in light of new concerns about new variants of Covid-19,” he added.

K. Tovar

Source: dpa

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The Gross Domestic Product (GDP) of the United States will return to its pre-pandemic levels in mid-2021, while surpassing its potential in early 2025, according to an analysis published by the Congressional Budget Office (CBO) .

The agency explained that its economic growth projections have benefited from the impact of the different stimulus programs that have been applied in the country in recent months. Specifically, the CBO estimates that the US GDP will grow 3.7 % this year, 2.4 % in 2022, 2.3 % in 2023 and 2.2 % in both 2023 and 2025 .

The labor market will not follow the same pace of recovery. The Office estimates that the unemployment rate will return to around 4 % by 2024. “As the economy expands, many people will rejoin the workforce they left during the pandemic, returning to its prepandemic level in 2024.”

According to the horizon of economic estimates of the CBO, the economy will continue to expand between 2026 and 2031 at an average rate of 1.6 %. The forecast is for growth to exceed its potential because the US Federal Reserve is expected to allow inflation to moderately exceed the 2 % target for some time to compensate for previous periods of low inflation.

K. Tovar

Source: Moneycontrol

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