Biden’s huge economic challenge: getting 10 million people back to work

(Reuters) – President Joe Biden pushed for more tax support on Friday to tackle one of the biggest challenges created by the COVID-19 pandemic – how to get millions of unemployed Americans back to work.

The labor market regained some ground in January when the economy added 49,000 jobs, according to a report released by the Labor Ministry on Friday. But the report showed that labor market growth is stagnating, doing little to close the huge gap created by the pandemic.

“At this rate, it will be 10 years before we get to full employment,” Biden said Friday morning from the White House.

About half of the 22 million jobs lost at the height of the pandemic have been recovered. But that still leaves a gap of around 10 million jobs, filled disproportionately by women and minorities in low-wage positions.

Jared Bernstein, member of the White House Council of Economic Advisers, highlighted an increase in long-term unemployment and the disproportionate effects of the pandemic on women and workers of color, while stressing the importance of taking action quickly.

“Today’s (jobs) report is yet another reminder that our economy is still emerging from a hole deeper than the Great Recession and in need of further relief,” said Bernstein said during a White House press briefing on Friday.

Here’s a look at who might need help the most as the economy heals:

MINORITIES strike harder

As the economy reopened last year following widespread shutdowns, many office workers have adapted to remote working and other industries have reminded people to their jobs.

But many black, Hispanic and Asian workers who were overrepresented in the low-wage occupations most affected by the pandemic are still unemployed, such as waiters, bartenders, cooks and housekeepers.

The overall unemployment rate fell to 6.3% in January. But within that rate are huge racial disparities – over 9% of black workers are unemployed, compared to less than 6% of white workers:

Graphic: Racial disparities widen Racial disparities widen –

KIND WOMEN

Before the pandemic, the proportion of women working or looking for work was increasing, thanks to a record economic expansion.

The crisis erased those gains, in part because school and daycare closures left working mothers with a weaker support system.

Some 2.5 million women dropped out of the workforce during the pandemic, up from 1.8 million men, according to Labor Department data.

Figure: Women leaving the labor force Women leaving the labor force –

Biden says he wants to help more women return to work through policies that reopen safe schools and make child care more affordable.

SECTOR BY SECTOR

Businesses that rely on travel or people spending time close to each other indoors have rebounded the slowest. Many people who used to make a living equipping kitchens, mixing drinks or cleaning hotel rooms are still out of work.

Employment in recreation and hotels fell 23% in January from pre-pandemic levels in February 2020, more than in any other industry.

Charts: The patchwork recovery: Jobs by industry –

Economists expect many of these jobs to return after the widespread distribution of coronavirus vaccines and consumers feel more comfortable spending money in restaurants, bars and other places of entertainment. . But it is not clear whether employment will return completely to previous levels.

LONG-TERM EMPLOYMENT

Job searches have spread for some people, many in the leisure and hospitality industry.

The “long-term unemployed”, or those who have been out of work for at least six months, now represent around 40% of the total unemployed, or around 4 million people, up from around 20% before the pandemic.

Research shows that the long-term unemployed may have a harder time finding a new job, making them more vulnerable to pay cuts or dropping out of the labor market.

Chart: longer unemployment spells –

Biden wants to create federally-subsidized jobs in health care, clean energy and other fields that could help the long-term unemployed move into new roles.

THROUGH THE MAP

Designing federal policies to help the unemployed can be particularly difficult because job losses vary widely from state to state.

Employment in Idaho, Utah and Kansas had completely returned to pre-pandemic levels in December. But the situation was more dire in New York and Nevada and Hawaii, dependent on tourism.

This could lead to wide disagreement among lawmakers over the amount of additional aid needed to restore the health of the economy and the labor market.

Graphics: Patchwork restoration: Jobs by state –