Joe Biden may have won the election, but he will now be responsible for an economy that might not see a complete recovery until the next elections.
The unemployment rate in America is extremely high due to the pandemic, which now stands at 22 million. After the lockdown was lifted, only about half of those jobs have been recovered.
The unemployment rate is still at 6.9% and the nation has lost 10 million jobs since the beginning of the pandemic. Millions of workers now depend on the federal unemployment benefits program, which is set to expire in December this year.
An economist at Goldman Sachs has forecast that the unemployment rate will decrease to 6.6% by the end of the year. However, full employment will only be possible until 3 years from now in 2024 when the unemployment rate is predicted to be at 3.9%, which will be above the pre-pandemic rate, but considerably better.
Before the beginning of the pandemic, the unemployment rate was the lowest in 50 years at 3.5%. The Biden-Harris administration will have to come up with a quick plan of action to aid those who will be in financial trouble by the end of December when the unemployment benefits expire. They will also have to provide help to struggling businesses.
Biden has proposed a plan to extend the unemployment benefits program as well as cater to businesses by providing more financial support.
After the distribution of the vaccine, workers who dropped out of the workforce will return to the market. These were workers who are not employed and are not looking for jobs either.
People who were temporarily fired from their workplaces will also return to the labor market. Unemployed workers who are looking to get back into the workforce will also have new jobs available to them.
Analysts are positive that people will return to the labor force rapidly because the majority of them have stated in surveys that their main reason to halt their job search is the pandemic. With the release of a vaccine expected to happen sooner, these people will be able to return to their workplaces.
Pzifer recently announced that their vaccine proved to be 90% effective in late-stage trials. They are now waiting for approval from the US Food and Drug Administration for an emergency. This will be provided if the monitoring of the volunteers prove to yield positive results.