Sunday, February 25th, 2024

Good news from America amid global recession, unemployment at 50-year low, inflation also under control


Photo: PTI Joe Biden, President of the United States

Unemployment Hits 50 Year Low in US and Inflation Bent: Good news has come from America in the midst of a worldwide recession. In the month of December, the unemployment rate in America has come down to the lowest level in 50 years. The news is a sure sign of US economic recovery despite the impact of the COVID-19 pandemic and the recent increase in global oil prices due to the Ukraine war. Not only this, inflation has also been controlled. Despite this, inflation still remains a challenge for America.

US President Joe Biden reminded the country in his remarks on Friday that he celebrated the new report on jobs. Today’s report is great news for our economy and great proof that my economic plan is on track. He said that the unemployment rate has come down to the lowest in 50 years. We’ve just had two of the strongest years of job growth in history, and we’re seeing a transformation.

aim to reduce inflation

Biden cautioned that we are encouraged by the unemployment rate being the lowest it has been in 50 years. Inflation has come down, but we still have work to do to reduce inflation and help American families struggling to make ends meet. He said that we are moving in the right direction. Inflation for the 12 months ended November stood at 7.1 per cent, according to the latest count by the US Labor Department. A new estimate is expected later in January. The US Fed Reserve Bank began intervention last June after inflation jumped a whopping 0.75 percent to a 40-year high of 8.6 percent, the highest since 1994.

austerity agenda
The US now aims to curb spending, but there are fears it could restrict production if consumers don’t buy. In such a situation, companies will not have much to sell and production will be cut. This will lead to recession, which will slow down the economy. The Fed is set to announce another rate hike after its January 31-February 1 meeting of its top decision-making body. There are indications that the hike could be less in the range of quarterly percentage points, according to the minutes of the body’s December meeting released this week.

Gas price control challenge
The Biden administration also targeted inflation through the ambitious $370 billion Inflation Reduction Act, which aims to reduce the deficit by higher taxes on the super-wealthy, expanded health care benefits, lower prices for some prescription drugs and clean There is a historic effort to invest in energy. Meanwhile, the real battle over inflation is being fought at gas pumps and grocery stores. Gas prices continue to rise and fall due to the Ukraine war, despite several releases of funds from the US strategic reserve ordered by President Biden.

Unemployment low despite layoffs in America
The direct result of economic uncertainties is not entirely linked to inflation. There have been massive layoffs in the tech sector such as Facebook and Twitter in November. More than 125,000 technical workers were laid off in the year 2022 and it continues. Amazon announced on Thursday that it is going to lay off 18,000 employees. This is the biggest layoff ever and comes a day after online clothing company Stitch Fix laid off 20 percent of its employees and Krypto is planning to lay off another 30 percent. These tech companies hired a large number of employees during the COVID-19 pandemic. The return to normalcy has forced these companies to lay off employees. Despite this, the improvement in the unemployment rate can be called a good sign.

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