The US economy surged only 2 percent in its third quarter – which is much slower than the overall expectation proclaimed by the analysts initially.
The Feds announced on Thursday, that a slower economic rise was observed in the third quarter of 2021, thanks to the cooling down effect of the covid-19 pandemic which rampaged inflation across the country.
The Gross Domestic Product of the United States of America grew by a mere 2 percent between the time of July till September compared to the same tenure last year.
The surge in the US economy is being seen as a good sign as overall covid-19 cases drop across the country and people tend to get vaccinated rapidly.
The Wall Street Journal and Dow Jones economic experts had expected that the growth rate of American GDP will be around 2.8 percent in the third quarter of the fiscal year.
The country was challenged with a lot of issues apart from the ongoing covid-19 pandemic. There were labor shortages along with operational challenges which reduced the work outcome and an increase in inflation across the United States of America.
The economists further stated that the unemployment remains stationary from last week as even there have been new unemployment claims, the number is 290,000.
It is reported that approximately 2.4 million citizens of America are still benefiting from the unemployment benefits initiated by the federal government.
As the country comes out of the harrowing shadows of the coronavirus pandemic, it is alarming to see that very few new jobs are being circulated in the market which is unbalancing the ecosystem.
According to the new jobs report published in September 2021, only 194,000 jobs were added in the month which is way less than what the economists and financial experts had expected.
The September figures have left the economists disappointed and in disbelief and they are compelled to announce that the recovery of the US economy will take longer than expected and the road will be bumpier than acknowledged earlier.
Marty Walsh, the Labor secretary stated that it will be best to acknowledge the low numbers as soon as possible in order to devise a plan about how to increase it. He blamed the pandemic for the poor numbers.
“There’s no question that we have work to do. Number one we’re still living with a pandemic. It’s a worldwide pandemic. Also, people are concerned about the delta variant, people are concerned about their personal health. We have folks that are vaccinated, folks that aren’t vaccinated, people who are vaccinated worried about the people that aren’t vaccinated.”
The covid-19 cases number has started to drop down drastically, showcasing a ray of hope at the end of the tunnel for the US economy to stand back on its feet sooner than later.