Biden's immense economic challenge: Putting 10 million people back to
work
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[February 06, 2021]
By Jonnelle Marte
(Reuters) - President Joe Biden pushed for
more fiscal support Friday to address one of the greatest challenges
created by the COVID-19 pandemic - how to get millions of out-of-work
Americans back on the job.
The labor market regained some minor ground in January when the economy
added 49,000 jobs, according to a report released Friday by the Labor
Department. But the report showed labor market growth is stalling, doing
little to close the huge gap created by the pandemic.
"At that rate it's going to take 10 years before we get to full
employment," Biden said Friday morning from the White House.
Roughly half of the 22 million jobs lost at the height of the pandemic
have been recouped. But that still leaves a hole of about 10 million
jobs, disproportionately ones held by women and minorities in low-wage
roles.
Jared Bernstein, a member of the White House Council of Economic
Advisers, pointed to a rise in long-term unemployment and the pandemic's
disproportionate effects on women and workers of color, while stressing
it is important to act soon.
"Today's (employment) report is yet another reminder that our economy is
still climbing out of a hole deeper than that of the Great Recession and
needs additional relief," Bernstein said during a news briefing at the
White House on Friday.
Here is a look at the people who may need the most help as the economy
heals:
MINORITIES HIT HARDEST
As the economy reopened last year from widespread shutdowns, many office
workers adjusted to working remotely and other industries called people
back to their jobs.
But many Black, Hispanic and Asian workers who were overrepresented in
the low-wage occupations most affected by the pandemic are still
unemployed, such as servers, bartenders, cooks and housekeepers.
The overall unemployment rate dropped to 6.3% in January. But within
that rate are huge racial disparities - over 9% of Black workers are
unemployed, versus less than 6% of white workers.
WOMEN PUSHED OUT
Before the pandemic, the share of women either working or looking for
work was rising, thanks to a record-long economic expansion.
The crisis reversed those gains, in part because the closures of schools
and child care centers left working mothers with a weaker support
system.
Some 2.5 million women dropped out of the labor force during the
pandemic, compared to 1.8 million men, according to data from the Labor
Department.
Biden says he wants to help more women get back to work through policies
that reopen schools safely and make childcare more affordable.
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Job seekers prepare for career fair to open at Rutgers University in
New Brunswick, New Jersey, January 6, 2011. REUTERS/Mike Segar/Files
SECTOR BY SECTOR
Businesses that rely on travel or on people spending time close to
each other indoors have rebounded the slowest. Many people who made
their living by staffing kitchens, mixing drinks or cleaning hotel
rooms are still out of work.
Employment in leisure and hospitality was down 23% in January from
pre-pandemic levels in February 2020, more than any other industry.
Economists expect many of those jobs to return after coronavirus
vaccines are distributed widely and consumers feel more comfortable
spending money in restaurants, bars and other entertainment venues.
But it's not clear whether employment will return completely to
previous levels.
LONG-TERM UNEMPLOYED
Job searches have stretched on for some people, including many in
the leisure and hospitality industry.
The "long-term unemployed," or those who have been out of work for
at least six months, now make up about 40% of the total unemployed,
or about 4 million people, up from about 20% before the pandemic.
Research shows people who are long-term unemployed can have a harder
time finding new jobs, putting them at greater risk of facing pay
cuts or of dropping out of the labor market.
Biden wants to create federally subsidized jobs in healthcare, clean
energy and other fields that could help the long-term unemployed
move into new roles.
ACROSS THE MAP
Designing federal policies to help the out of work may be especially
challenging because job losses vary widely from one state to the
next.
Employment in Idaho, Utah and Kansas had fully recovered to
pre-pandemic levels by December. But the situation was more dire in
New York and tourism-dependent Nevada and Hawaii.
This could lead to wide disagreements among lawmakers about how much
more aid is needed to nurse the economy, and the labor market, back
to health.
(Reporting by Jonnelle Marte; Additional reporting by Howard
Schneider. Editing by Heather Timmons, Andrea Ricci and Chizu
Nomiyama)
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