Washington (CNN)-The U.S. job market in May and June is full of resilience, which makes investors hope that a strong economic recovery can quickly free the country from the severe recession caused by the global health crisis. However, the employment report scheduled for release this week in July may become a reality check, putting pressure on Congress to push for another round of stimulus spending.
As the health crisis in many states has worsened and new movement restrictions have been required, the higher initial unemployment benefit requirements in the past two weeks have been flagged as warning signs.
“As concerns about the virus increase, unemployment and income decrease, we feel that recovery may be much harder than the market seems to be, and believe that in the next few months we are disappointed with certain data,”
Economists surveyed by Refinitiv predict that the U.S. economy added nearly 1.4 million jobs last month. Compared with the 4.8 million growth in June, these growths are solid but will mark a fall.
Signs of economic weakness will put pressure on Congress to formulate the next stimulus plan. This is the critical time before the summer recess of lawmakers.
One major benefit-an additional $600 a week in aid to unemployed Americans-expired last week. Update or reduce revenue is still the focus of debate.
time is life. According to Bank of America economists Michelle Meyer and Stephen Juneau, if there are no stopgap measures, Americans’ weekly income could be reduced by 18 billion. Dollar. This will put pressure on spending that accounts for about two-thirds of the US economy.
Meyer and Juno believe that lawmakers can reach an agreement earlier this month. They expect this price to be higher than the $1.1 trillion bill proposed by Republicans in the Senate, but far lower than the $3.4 trillion legislation passed by the Democrats in the House of Representatives.
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