One of the strategies implemented by the US government to keep the national economy afloat due to the Covid-19 pandemic, both under former President Donald Trump, and the present one, led by Joe Biden, had to do with distribution of the stimuli that have been promoted, but soon the federal aid will practically be extinct, so the economic course will be determined by the workforce.
Jack Kleinhenz, an economist at the National Retail Federation (NRF), reported in an NFR post that Child Tax Credit and stimulus checks have helped boost consumer spending so far this year, but the next stage of economic growth will depend more on job creation across the country.
According to the expert, the reason why growth will depend on the labor force has to do with the reopening of the economy in practically all productive sectorsIn this sense, as it continues to expand, “federal aid will be reduced and there will be a focus on the ability of the labor market to generate force in wages to support spending.”
The statements by Jack Kleinhenz are not said on the air, because since the economic reopening began throughout the country, a large number of companies, as well as government agencies announced that they would provide their employees with improved remuneration. In most cases the minimum wage paid is $ 15 an hour.
Situation that makes the working class have the purchasing power necessary to be able to consume. For this reason, Kleinhenz detailed in his analysis that “American consumers remain in the mood to spend, but the labor market and job creation will play an increasingly important role in their ability to do so.”
Despite the fact that the expert states that job creation will be the engine for the consolidation of the economy after the strong impact it has had as a result of the Covid-19 pandemic, progress in hiring has been slow, as it is still they have not been filled million vacancies offered in different industries.
Perhaps, this trend will soon be reversed, as the federal unemployment benefits approved by the Biden administration expire on September 6 so that millions of Americans will not be left without an economic support due to unemployment. Federal aid has awarded $ 300 a week to recipients. And with cancellation of benefits must return to jobs.
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