Jobs Report Shows The Economy Is Still In Crisis And We Need The American Rescue Plan
February 5, 2021
Today’s jobs report confirmed that the economy is still in crisis and has a long way to go before we return to pre-pandemic levels. It’s clear that the country needs big, bold relief and economists agree that President Biden’s American Rescue Plan would provide a significant boost to the economy and put us on the road to recovery.
The January jobs report shows that the labor market is still fragile and we have a long way to go to recover to pre-pandemic levels.
NBC News: “The economy added a meager 49,000 jobs in January and the unemployment rate fell to 6.3 percent as the size of the labor force shrank, signaling the ongoing fragility of the recovery.”
Washington Post: “The January data, released by the Labor Department, is yet another reminder of how much ground the labor market still needs to regain to return to pre-pandemic levels. The country has recovered just over half of the 22 million jobs lost between February and April, but the economic recovery has recently flatlined.”
The jobs report also confirms that the economy is in urgent need of more stimulus in order to fully recover.
Bloomberg: “The January data may strengthen the case for another sizeable pandemic relief package. President Joe Biden has proposed a $1.9 trillion package, but many Republicans prefer to hold off on more assistance and wait for the December $900 billion aid package to filter through the economy.”
Wall Street Journal: “Many economists also say the economy could benefit from further government stimulus.”
Economists agree that President Biden’s American Rescue Plan would provide a large boost to the economy and put us on the road to recovery.
Reuters: “Analysis: Biden’s $1.9 trillion rescue package offers bridge for hard-hit economy”
The Hill: “The COVID-19 relief proposal put forth by a group of 10 Senate Republicans would not return the U.S. economy to pre-pandemic levels, according to a study released Wednesday by the Brookings Institution. The same study found that President Biden’s relief plan would boost growth to rates seen before the pandemic took hold.”
Moody’s Analytics: “President-elect Joe Biden’s proposed $1.9 trillion fiscal rescue package, the American Rescue Plan, would provide a large boost to the economy if passed into law. With this additional economic support, real GDP growth would be robust at nearly 8% this year and almost 4% next, bringing the economy back almost to full employment by fall 2022.”