Biden wants stimulus passed after poor jobs report to save his presidency.
Official figures have shown that employers added 235,000 new jobs in the month of August, well short of the 728,000 expected by economists – and down from just over a million in July.
The slow in growth has been blamed on the surge of the Delta variant which has had a significant impact on restaurants and hospitality settings across the country, and which has also caused uncertainty for employers who would have otherwise made new hires. This has been shown in the latest report.
This means the brakes have been firmly slammed on what had been a sharp jobs recovery at the beginning of the Biden Administration, leading to months of uncertainty from now until the end of the year.
Nearly a year and a half since the beginning of the Covid-19 outbreak the US economy remains 5.3 million jobs short of where it was in February 2020, before Covid-19 threw a wrench into the gears.
The second thing that has to happen in September is for the Congress, the House and Senate, to finish passing my economic agenda so that we can keep up the historic momentum we’ve been building,”-Joe Biden according to Fox News
Many leading economists have expressed worry at the latest jobs figures, saying that it may show that the recovery is taking much longer than originally expected. Others worry about a repeat of last winter — when Covid cases rose and led to renewed restrictions that resulted in job losses in December.
Disruption to children’s schooling meant that many parents had been forced out of the workforce, and September had been earmarked as the end to this absence due to the new academic year beginning. However, the recent jobs figures do not appear to have shown this. Experts will be hoping that new hires, who are parents previously forced out of jobs, will be reflected in the September figures.
The latest numbers come as President Joe Biden pressured Congress this past Friday to pass his economic stimulus package amid concern from The White House over the latest report.