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President Joe Biden warned on Friday that the number of coronavirus cases would go up before it came down but insisted America could beat the Delta surge and that the economic plan was working after the U.S. economy added 943,000 jobs in July.
The numbers surpass expectations but come amid warnings that the rapid spread of the Delta variant could reverse gains amid fears of fresh lockdowns and closures.
Even as he celebrated the jobs figures as proof that his policies were working, the president voiced fears of tough times ahead.
‘Cases are going to go up before they come back down,’ he said at the White House. ‘It’s a pandemic of the unvaccinated.’
Speaking just before he flew out to his Delaware home for the weekend, he wore a tan suit – triggering a wave of jokes on social media as commentators remembered the furore set off by President Obama’s tan suit.
Biden added that the country was better prepared with vaccinations and masks this time around, so that the economic damage would not be as severe as it was last year.
‘America can beat the Delta variant. Just as we beat the original COVID-19,’ he said.
‘We can do this.’
President Biden’s decision to wear a tan summer suit, before leaving the White House for the weekend, triggered a wave of commentary of social media as users remembered the anger and hostility directed at President Obama when he dressed in beige for 2014 news conference
Biden said the jobs numbers showed his economic policies were working during a speech in the East Room of the White House, but admitted the number of coronavirus cases was going to go up before it came down
The U.S. economy added 943,000 jobs in July and unemployment fell from 5.9 percent to 5.4 percent according to the latest statistics released by the Bureau of Labor on Friday morning
Seven states – Florida, Texas, Missouri, Arkansas, Louisiana, Alabama, Mississippi – account for about half of new cases and hospitalizations in the past week, according to the White House
After declining for months with the roll-out of vaccinations, the number of COVID-19 cases has been surging in the past months because of the highly transmissible Delta variant and reservoirs of unvaccinated people
President Biden heralded the numbers as ‘historic’ and proof that his policies were working
Jason Furman, a leading economist in the Obama White House, welcomed progress but said the economy was still millions of jobs short of where it would have been without the pandemic
The strong jobs numbers will be a relief to the White House after Biden’s approval ratings took a hit during the past month as COVID-19 cases increased.
Employment growth exceeded the 850,000 gain in jobs predicted by economists as Americans started seeing signs of a return to normality this summer.
Hotels and restaurants added 327,000 jobs last month as they reopened and business picked up and local public schools added 221,000.
Biden said the numbers showed that his policies were working.
‘What is indisputable now, is this: The Biden plan is working,’ he said. ‘The Biden plan produces results and the Biden plan is moving the country forward.’
He said the child tax credit was one of the sources of progress.
Families were returning to restaurants and sports fans filled stadiums across the country, but the explosion in cases in recent weeks has sparked fears the numbers could trend down again in the coming months.
Alfredo Ortiz, president of the Job Creators Network, said only ten percent of small businesses said they had fully recovered.
‘Even these gains are in danger, however, as blue state governors and mayors impose new mandates,’ he said.
‘Mayor de Blasio is the poster child, imposing new mandates on small businesses that are already experiencing staffing shortages.
Jason Furman, who was chairman of President’s Biden’s Council of Economic Advisers, welcomed the numbers but pointed out the economy was missing millions of jobs.
‘Still a long way to go: we’re about 7.5 million jobs short of where we should have been right now absent the pandemic,’ he said on Twitter.
‘But we’ve made a lot of progress.’
Scott Anderson, chief economist at Bank of the West in San Francisco, told the New York Times: ‘It’s been a sprint in terms of growth, but we may be moving into more of a marathon.
‘Travel season is winding down, and the Delta variant is a big concern.’
The coronavirus triggered a brief but intense recession last spring, forcing businesses to shut down and consumers to stay home as a health precaution. The economy lost more than 22 million jobs in March and April 2020. Since then, though, it has recovered nearly 16 million jobs, leaving a 6.8 million shortfall compared to February 2020.
The rollout of vaccines has encouraged businesses to reopen and consumers to return to shops, restaurants and bars that they had shunned for months after the pandemic struck. Many Americans are also in surprisingly strong financial shape because the lockdowns allowed them to save money and bank relief checks from the federal government.
The number of deaths from coronavirus continues to creep up across the United States
Democrats were quick to say that the strong numbers were evidence that their economic policies and spending plans were creating jobs
Political forecasters said Biden’s dipping ratings will need more than strong job numbers
As a result, the economy has bounded back with unexpected speed. The International Monetary Fund expects U.S. gross domestic product – the broadest measure of economic output – to grow 7% this year, its fastest pace since 1984.
Employers are advertising jobs – a record 9.2 million openings in May – faster than applicants can fill them.
Greg McBride, chief financial analyst at Bankrate.com, said: ‘Things are undeniably moving in the right direction.’
But traders expected a muted impact on markets, after economists said the report would reinforce worries about wage inflation.
Peter Cardillo, chief market economist at Spartan Capital Securities,’ told Reuters: ‘This report indicates that wage inflation is picking up, it certainly indicates inflation has more staying power and is not necessarily temporary.’
Some businesses blame generous federal unemployment benefits – including an extra $300 a week tacked on to regular state jobless aid – for discouraging Americans from seeking work.
In response, many states have dropped the federal unemployment assistance even before it is scheduled to expire nationwide on Sept. 6.
Many Americans may also be staying out of the job market because of lingering health fears and trouble obtaining childcare at a time when many schools are closed.
Another problem: Many of those thrown out of work by the coronavirus recession can´t go back to their old jobs.
Rubeela Farooqi, chief U.S. economist at High Frequency Economics, noted, for instance, that about 80,000 restaurants had closed since March 2020. So those displaced workers must find new employers and often new careers.
There are growing concerns that the surge in cases of the Delta variant could prevent the economy from recovering with the threat of new lockdowns and restrictions
Conservative leaders fear that fresh wave of mask mandates and other measures, introduced amid in surge of cases, will set back existing gains
‘Matching the unemployed to job openings will likely be a more prolonged process, given that finding a new job, perhaps in a new industry, will be a challenge,’ Farooqi wrote in a research report.
Farooqi also said the labor market may face longer-term struggles once temporary labor shortages sort themselves out. This is because many businesses adjusted to working with fewer employees during the pandemic, often using technology that reduced the need for human labor.
Also clouding the outlook for jobs is a resurgence of COVID-19 cases caused by the spread of the highly contagious delta variant.
The United States is reporting an average of more than 75,000 new cases a day, up from fewer than 12,000 a day in late June – although still well below the 250,000 levels of early January.
Oxford Economics´ Lydia Boussour said the spread of the delta variant might have ‘have dampened workers´ willingness and ability to rejoin the workforce’.
But she doubted it would have a big impact on the July numbers because virus worries didn’t escalate until after the Labor Department had collected its hiring data for last month.
Source: Daily Mail
The post ‘America can beat Delta, like we did original COVID’: Biden wears tan suit to push child tax credits appeared first on NewsFinale.
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