The global labor market was struck hard by the Coronavirus – COVID-19 Pandemic. The global market continues to take steps to heal and the U.S. is among the countries attempting to bounce back after the deficit faced from the global crisis. While there is still massive damage that is apparent in the job marketing, the U.S. payroll rose by 1.4 million in the month of August. This caused the unemployment rate to fall to 8.4 percent from the 10.2 percent that was seen in July. This is the first positive impact on unemployment since the economic decline caused by COVID-19, according to the Bureau of Labor Statistics.
While the drop in unemployment is something to be positive about, there are still negative repercussions of the pandemic that can been seen in the workforce. The pace of rehiring has slowed, and furloughs have increasingly turned into permanent layoffs. Improvement seems to be slowing down as well which can be seen in most industries that were drastically affected. This shows that the easy adaptability that was seen in response to the pandemic have now caught up with the present. Companies must find new ways in order to keep their businesses moving forward.
With there still being a long way back to “normal”, the August numbers show a great step in progress toward mending our labor force. Single digit unemployment and the increase in payroll shows that the U.S. is taking the rights steps toward healing the economy. More than half of the displaced workers during the pandemic are back to work which brings a positive charge toward a bounce back and a good outlook for those who remain displaced.
Currently, the U.S. economy is shifting from a “natural disaster” response to a “deep recession” pattern. This means that legislature has more time to make decisions as we are out of the previous high-pressure environment since we are technically out of the emergent danger zone of the pandemic. What policy makers do next will be pivotal for the economy. If policies are made at too slow of a pace, it is likely to exacerbate the situation but if made too hastily, the same outcome can arise.