The economic recovery from the pandemic is being hampered by an omicron-driven rise of coronavirus cases, The Hill reports.
The rapid and unprecedented rise in coronavirus infections has slowed consumer spending, prompted layoffs, and pushed millions of Americans out of work to care for a sick family member or themselves.
Private sector statistics on eating and travel, growing weekly unemployment claims, widespread staffing concerns, and school closings all hint to a lackluster January job increase and sluggish first-quarter growth.
While analysts predict that the omicron strain will not cripple the economy as a whole, millions of frontline employees, professional parents, and service industry enterprises are bracing for another harsh pandemic winter.
President Biden has a big hurdle in the form of a delayed economic recovery caused by an increase in coronavirus infections, which he campaigned on as a promise to end the pandemic and restore the economy. As both viral cases and consumer prices have risen, the president’s popularity ratings for his management of the coronavirus and the economy have consistently declined.
Sen. Joe Manchin crushed Biden’s massive social services and climate proposal — a centerpiece of his economic strategy — in December, insisting that Thursday’s discussions must start “from scratch.” The president’s most forceful attempt to combat the epidemic, Biden’s private sector vaccination requirement, was likewise ruled down by the Supreme Court the week before.
Although the White House scrambles to get millions of quick testing and masks out to the public, omicron has already had an influence on consumer sentiment and economic output.
According to a study conducted by Ipsos and Goldman Sachs Investment Research, 59% of individuals feel that everyday activities entail “moderate” or “major” health risks, the highest percentage since March 2021. These anxieties are most likely to blame for a significant decline in TSA airport throughout and OpenTable’s restaurant tracker.
According to a Moody’s Analytics study of Census Bureau data released Wednesday, over 12 million Americans left work in the first 10 days of January to care for a loved one with coronavirus or to prevent acquiring it, more than double the figure for the same time in December.
Per the Labor Department, weekly unemployment claims jumped by 55,000 to a seasonally adjusted total of 286,000 last week, the highest level since October.
Both the claims data and the Census Bureau survey include the time period when the Bureau of Labor Statistics (BLS) compiles the government monthly jobs report, which is a warning sign for January job growth.
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