“There’s very little to celebrate in this report,” said Julia Pollak, a labor economist for the employment site ZipRecruiter. “Almost every measure that I was hoping would point in the right direction disappointed.”
Still, in returning to growth, even if marginal, the economy avoided a second consecutive month of job losses, a prospect that some economists had feared given the one-two punch of rising coronavirus cases and waning federal aid. Both those forces are now reversing: Coronavirus cases are falling in much of the country, and the $900 billion relief package passed by Congress in December is bringing a measure of help to households and businesses.
Indeed, despite the grim start to the new year, many forecasters predict that the economy will strengthen from here on. In addition to the December stimulus, the vaccination push, though slower than hoped, is paving the way for wider reopenings even as coronavirus mutations around the world make the rollout more urgent.
“It is a positive sign that we got over those speed bumps and the wheels haven’t completely come off the car,” said Nick Bunker, head of research for the job site Indeed.
For Hand Stone, a national chain of massage studios and facial spas, the winter resurgence of the pandemic was a setback after a monthslong process of reopening. California and other states reimposed restrictions that shut down many spas entirely and forced others to cut back services. And the loss of foot traffic cut back on gift card sales, usually a big source of business during the holidays.
“Reticence to go out and engage in the economy and be in stores was a huge negative,” said Todd Leff, the company’s chief executive.
Article source: https://www.nytimes.com/2021/02/05/business/economy/january-2021-jobs-report.html
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