Economy

US economic growth slows down due to surge in COVID-19 infections

COVID-19 shrinks economic growth

According to the Ministry of Labor, only 245 thousand new jobs appeared in the market in November, which is much lower than earlier forecasts.

The recovery of the American economy seems to be slowing due to the increase in the number of cases of coronavirus infection: in November, employers opened 245,000 new jobs, which was below preliminary forecasts. This is stated in the report of the Ministry of Labor, which was published on Friday morning..

Although the unemployment rate, according to the Department of Labor, in November fell to 6.7% from 6.9% in October, and this is the lowest level since the beginning of the pandemic in the United States, 10.7 million Americans remain unemployed..

The report says that the number of people without work for a long time (more than 27 weeks) increased over the past month by 385 thousand and reached 3.9 million..US economic growth slows down due to surge in COVID-19 infections In addition, the level of general economic activity fell by two tenths of a percentage point to 61.5%..

The November consensus forecast was much stronger growth in the labor market – 650,000 new jobs were expected last month, but many economists have warned that the results will be more disappointing due to the new wave of the coronavirus pandemic.

In addition, the situation could get worse, according to some estimates, as Republicans and Democrats were unable to agree on an economic aid package to replace the $ 2.2 trillion CARES bill passed in March. Many of the provisions of this law have already expired, and millions of Americans will lose unemployment benefits immediately after Christmas..

On Thursday, President Donald Trump, who is due to leave the White House late next month, said he would like to sign a new law to help the economy..US economic growth slows down due to surge in COVID-19 infections “I want this to happen. And I think we are very close to making a deal, ”Trump said in a conversation with reporters..

Democratic leaders in Congress endorsed a $ 908 billion bipartisan compromise proposal that at least could be a starting point for further discussions.

President-elect Joe Biden said Thursday that the plan “will be a good start.” But “that’s not enough,” Biden added in a joint interview with CNN, which he gave along with Vice President-elect Kamala Harris. He said that after taking office, January 20, he would seek further assistance to the Americans..

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