The economic recovery from the pandemic hinders by an Omicron-driven rise of COVID 19.
America’s Economic Status
In the recent news of The Hill, President Biden campaigned as a promise to end the pandemic and rebuild the economy. Unfortunately, he faces severe difficulty in slowing recovery due to mounting COVID-19 cases. As both viral cases and consumer prices are rising, the president’s approval ratings for his handling of COVID-19 and the economy are also declining.
While the White House scrambles to get millions of rapid testing and masks out to the public, Omicron has already had an impact on consumer confidence and economic activity. According to a Moody’s Analytics study of Census Bureau data released Wednesday, over 12 million Americans missed work in the first 10 days of January.
Also, in the news article of The Hill, Labor Department stated that weekly unemployment claims increased by 55,000 to a seasonally adjusted total of 286,000 last week, the highest level since October. Both the claims data and the Census Bureau survey cover the time period when the Bureau of Labor Statistics (BLS) compiles the federal monthly jobs report, indicating a bleak outlook for January job growth.
Omicron Variant Derails Economy
According to the report of Kathmandu Post, the World Bank specifies that the global economy is undergoing a dramatic downturn owing to new dangers from COVID-19 variations. Moreover, it also rises inflation, debt, and income inequality, which could jeopardize emerging and developing nations’ recovery.
Omicron might potentially postpone the return to work for millions of people who have been out of work due to health issues or child care commitments. The Kathmandu Post reported that tourist arrivals fell even more in 2021, hitting their level since 1977, as the coronavirus paralyzed the business despite many attempts to revive it by loosening entry restrictions. Hotels and restaurants continue to struggle to stay afloat.