December was a difficult month for the US economy. Millions of Americans have lost their jobs because of the coronavirus. It was believed that the situation might get better by the end of the year, but this was not the case.
It is considered to be the first major drop – in the job market – in seven months with as many as 175,000 individuals suffered job loss. Although the government’s employment report suggested that there has been a small increase in job creation, it was quite the opposite.
The stock market has seen a rise because of the COVID-19 vaccines being available in the country. However, the decline in the job market will have a long-lasting impact on the financial market.
The economy of the United States still has to go a long way as only half of the jobs were recovered. The labor market is still feeling the repercussions of COVID-19 as many people are still unemployed.
Due to the increasing coronavirus cases in the country, the restaurants and hotels were once again closed. This inflicted resounding damage to the restaurant business as the customer flow was slowed again.
The reintroduction of coronavirus restrictions is a testimony to a sudden rise in the case of coronavirus. At the same time, the initial rollout of the vaccine did not achieved the set goal, and only 3 million people were vaccinated.
The first week of January is crucial, with economic reports as the year 2020 closed. Wall Street is expected to pay attention to the weekly jobless claims to understand the economic situation right now.
The Federal Reserve will also come into the limelight, as the economic situation will be discussed at length by the top executives.