THE Joe Biden welcomed today the “good news” for the US labor market, which improved slightly in May, while stressing the need to adopt its two investment plans that are expected to create millions of jobs.
The president of USA praised the “historic progress” that has been made since taking office in January: “No major economy in the world creates jobs as fast as we do.”
“America is moving again,” he said.
To support the recovery and create millions of “well-paid” jobs, Joe Biden relies on two major investment projects, one for US families ($ 1.8 trillion) and the other in infrastructure (negotiations involve a range of from $ 1 to $ 1.7 trillion).
“We have to make these investments today so that we can continue to succeed,” he urged.
The Democratic president is negotiating hard with the Republican opposition and a new meeting is scheduled for the day. However, he said he was ready to postpone his plan to raise taxes on US companies for later, in order to reach an agreement.
7.6 million jobs are still missing
The US economy created 559,000 jobs in May, the Department of Labor announced. Double the number compared to April, a sign that the recovery is accelerating, but less than expected by analysts.
The good news is that almost half of these new jobs were created by companies in the leisure, catering and hotel businesses: those most affected by the crisis.
However, 7.6 million jobs are still missing from February 2020, before the US economy is hit hard by quarantine measures to curb Covid-19.
“Biden and the Democrats are preventing Americans from re-entering the job market and are therefore hindering our economy,” Republican President Rona McDaniel said in a statement.
The unemployment rate fell again in May to 5.8% (-0.3 points), after rising last month for the first time in a year.
But the inequalities exacerbated by the pandemic continue to exist: the unemployment rate remains much higher among African-American workers (9.1%) than whites (5.1%), Asians (5.5%) or Hispanics (7.3%).
“Employment growth remains surprisingly slow in an economy that no longer faces capacity constraints,” said Rubila Farouki, chief economist at High Frequency Economics (HFE).
More than half of the American population is vaccinated against coronavirus, which allows bars, nightclubs and amusement parks, among others, to reopen completely.
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