The labor market in the United States has improved, but there is still a long way to go to full recovery. The chairman of the US Federal Reserve System which acts as the country's central bank, Jerome Powell said this at a press conference on Wednesday.
вЂњThe number of initial applications has dropped very sharply from the extremely high level seen in March and April to a lower level, and it remains either at the same level or is gradually declining,вЂќ he said. вЂњThis suggests that the labor market situation has improved, but there is still a long way to go to maximum employment, and it will take some time to get back to what it was,вЂќ вЂ” said Powell.
вЂњThere were simply too many disruptions in many sectors of the economy. And now it is really difficult to say exactly where we are at,вЂќ he added.
An outbreak of the disease caused by the coronavirus was recorded at the end of 2019 in Central China and has spread to most countries. On March 11, the World Health Organization (WHO) declared it a pandemic. All countries and territories were forced to take various emergency sanitary and epidemiological measures, which led to a deep international economic crisis. According to the IMF forecast, this year the global economy will decline by almost 5%, but it will recover and grow by 5.4% next year.
Economic recovery prospects
The prospects for the recovery of the American economy from the effects of the pandemic remain highly uncertain. The chairman of the US Federal Reserve System (FRS), which acts as the country's central bank, Jerome Powell said this at a press conference on Wednesday.
вЂњThe recovery is faster than broadly anticipated and the FOMC members' outlook for economic growth this year has been revised upward from their forecast in June. Despite this, activity remains generally lower than before the pandemic, and the path forward remains largely uncertain, вЂњhe said.
Powell said that there will likely not be a full economic recovery in the United States until the pandemic subsides and people are confident that a full return to work is safe.
It will be very difficult for a number of sectors of the US economy to recover until the widespread use of the coronavirus vaccine begins, Powell said. The US economy has rebounded faster than expected over the past two months, he said.