Business February 4, 2021

Jobs May Not Be Back To Pre-Pandemic Levels Until 2024

NEW YORK, NEW YORK - APRIL 03: A sign alerts customers that a business in Queens, which has one of the highest infection rates of coronavirus in the nation, is closed on April 03, 2020 in New York City. Hospitals in New York City, the nation's current epicenter of the COVID-19 outbreak, are facing shortages of beds, ventilators and protective equipment for medical staff. Currently, over 100, 000 New Yorkers have tested positive for COVID-19. (Photo by Spencer Platt/Getty Images)

There is some slightly positive news on the job front today and some news that shows recovery won’t happen overnight. CNBC reports:

Weekly jobless claims came in a bit less than expected last week though U.S. employment gains remain sluggish.
First-time claims for unemployment insurance totaled 779,000 for the week ended Jan. 30, the Labor Department reported Thursday. That was below the 830,000 estimate from economists surveyed by Dow Jones.

Weekly jobless claims came in a bit less than expected last week though U.S. employment gains remain sluggish. @steveliesman reports. https://t.co/aUvRBEvVXm pic.twitter.com/gNCtRlWxoK
— CNBC (@CNBC) February 4, 2021

Maybe this is the beginning of a trend, though it’s too early to know, especially with new COVID variants spreading. Even if the job numbers do start consistently rising, conditions will take years to return to normal. This week the Congressional Budget Office said the unemployment rate is expected to gradually decline through 2026, and the number of people employed could return to pre-pandemic levels in 2024. The AP points out:

The 10-year outlook said the economic recovery from the coronavirus got a boost from an unprecedented wave of government spending to combat the outbreak, such that growth could pass its maximum sustainable level in early 2025 before returning to a long-run average of 1.7%. Based on the CBO’s projections, economic growth would be the strongest since 1999.