The US job market certainly took a significant hit due to the pandemic- millions of people lost their jobs. Fast-forward to 2021; the economy is opening up gradually, and activities are picking up; yes, there is hope for the nation's future. However, businesses have to rethink their human resource structures; of course, this comes at employees' expense. As a glad tiding, unemployment rates have fallen by over 6.3% (according to data from the labor department). More people are getting employed, and jobs lost during the pandemic are slowly but surely coming back.

While people all over the country are returning to work, news of the incoming Covid-19 vaccine has been one of the most significant boosts to the lowered unemployment rates. Sectors such as education have experienced more employment- over 40,000 people have gained jobs in the industry. Businesses are now reopening, and this provides a boost for the employment numbers.

Ironically, the e-commerce industry has experienced a significant boost even during the Covid-19 pandemic. E-commerce activities grew massively during the pandemic to a ten-year high of 33%. This growth has provided job opportunities in the sector, and experts predict it will not slow down anytime soon. With the development of technology, more people will adopt online shopping for their daily activities, and this will be incredibly beneficial for job creation in the e-commerce sector.

The healthcare industry experienced a lot of difficulties in 2020, especially with the pandemic. Today, however, there is a great demand for healthcare workers. Data from the bureau of labor statistics indicate that healthcare industry jobs will experience an over 14% growth. Battling the pandemic left the industry with a vast gap that needs filling. Further, there is a need for research and development professionals in the medical industry, even as the Covid-19 vaccine hits the market. Scientific experts and similar scholars will be crucial in administering and overseeing the dispensation of the Covid-19 vaccine.

Technological innovation has become a crucial part of businesses, and this presents a robust job climate. Also, as more enterprises rethink their business strategies, digitizing various business processes has become the norm. More people will have to adapt to this new normal, especially as the country continues to put in measures to fight the ongoing pandemic. Working from home is now standard, and this will present more job opportunities for people, unlike the traditional office setup. Sectors such as finance will-likely- provide more remote jobs as the year progresses.

In 2021 and beyond, remuneration for jobs will be standardized since those working at the office or remotely will be doing the same load of worth. Indeed, remote jobs have enabled businesses to pay employees remotely- the same way they would pay them traditionally. Also, as more companies adopt remote working, the workforce will easily access more jobs. Freelancers- the so-called digital nomads, can now get work from remote companies and get well compensated for their services.

Think of it: Savings by Americans has been at an all-time high, with data from the Bureau of Economic Analysis showing that saving rates are at an all-time high of over 30%. Such savings have enabled many Americans to eke out a living in sectors like the stock market. Moreover, cryptocurrency trading has become a booming business, with currencies such as Bitcoin hitting high levels. More people have begun to engage in financial trades; this was notable during the recent GameStop shares trading. Yes, more people are now creating jobs for themselves.

Ultimately, the retail sector has begun picking up, with data showing that retail sales during January experienced a 5.3% increase. The trajectory will likely continue in the coming months. True, the US government's stimulus strategy may have played a massive role in this spike; well, this is good news for America's job market. The retail industry provides lots of jobs for the economy, and- as more customers begin to spend their cash- this will significantly boost the country's job climate. Also, restaurants have gradually resumed services; this means more jobs for the economy. Consumer spending has provided a much-needed shot in the arm for the job market, and it is expected this job increase will continue as the country gradually reopens.

Good News: US Bank Deposits Go Up 21.3% to Hit a Record &16.2 Trillion

In the wake of the on-going pandemic and its devastating consequences in the US, there seems to be good news sweeping across the nation- bank deposits are steadily going up, and things are slowly stabilizing. Americans' total bank deposits increased to almost $16.2 trillion (a 21.3% increase compared to the previous year). Most economic analysts are upbeat the US economic metrics are finally getting positive. Is this surprising?

Think of it: In recent weeks, going up to January 2020, the numbers for building permits, existing home sales, and housing stats got more robust. In fact, the estimates for manufacturing and other services indicate an impressive expansion far above the projections by Wall Street gurus.

And the glad tidings don't end there- the overall measures of business activities drawn from different regional outposts mostly point to promising activity. The situation is far better than what many thought would be the case. Admittedly, while unemployment levels in the US are still higher than what's generally acceptable, the claims for unemployment or joblessness (submitted to government agencies) are now lower than what most analysts expected. Of course, we cannot expect the economy to come full circle just yet. Yes, we can only hope this will happen once the government cares entirely for the most vulnerable.

But the big question is: How can the government accurately target the most vulnerable and impacted people? Think of this: Almost 500,000 people lost their jobs in December 2020. At present, almost 16 million people are sustained by benefits given by the government to the unemployed. As noted, the number of those still dependent on such tickets has gone down significantly; regardless, millions of Americans will continue to rely on multiple agencies for daily survival- and this will go on for quite a while.

But- as they say, behind every cloud is a silver lining. As of January 2021, the rest of the US economy seemed to be getting more vibrant by the day. Considering that the most affected citizens have benefitted from two separate government stimulus packages worth over $3 trillion, is it surprising? As a result, many US households have witnessed a significant strengthening of their financial and economic prospects. These dynamics cannot be taken for granted. The country now enjoys hitherto unprecedented levels of low-interest rates and bond-buying worth trillions of dollars. Yes, these factors characterize a new degree of Federal Reserve monetary goosing.

Further, to return the economy back on track, there has been an unusual array of lending programs that aim to return the economy to the levels that existed before the coronavirus struck. Interestingly, the Fed is now purchasing bonds at a closer pace- approaching $1.5 trillion each year. What does this say about the ordinary American's overall economic situation? It says this: Things are getting better and becoming more promising as the days pass.

Consider the following data: Between January- February 2021, Americans' bank deposits went up to almost $16.2 trillion. This represents a 21.3% increase compared to what the situation was just a year ago. In fact, many institutions of Wall Street are witnessing unexpected record highs. Of the promising bank deposits, we have some $1.4 trillion in what is referred to as "excess savings" by BofA; these are likely to rise to $1.6 trillion as the government continues to distribute more checks from the earlier $900 billion stimulus package passed by Congress.

Further, according to the Bank of America Global Research, this is not all: There's a general surge in spending. Moreover, debit and credit card expenditures have gone up by 22% over the year (up to January 16, 2021) for low-income individuals who benefited from the last round of stimulus payments. Interestingly, according to the bank source, "most US households have more cash now than they've ever had. Yes, they're extraordinarily cash-rich." The Pantheon Macroeconomics chief economist Ian Shepherdson recently said this in a webinar session: "Thousands of US households now have a ready war chest that they're ready to spend as soon as possible. Once the Covid fear is effectively gone, we can assume more people will be ready to spend as much as they can."

According to Shepherdson, the rate of inflation is likely to accelerate. This would force the Fed to reconsider its overly-accommodative policies. Eventually, they'll be forced to tighten things much sooner than the market expected.

Is The US Government's Economic Recovery Plan "Over- Ambitious?"

Is the new US government's newly launched economic recovery plan overly-ambitious? Is it probably too big? While some experts and analysts think this is the case, others don't quite agree. For instance, Jonathan Parker, who serves as Professor of Finance at the MIT Sloan Management School, poses a pertinent question: 'What should be foremost in our minds as we define the much-touted US government's recently announced stimulus package? Are we in a situation where we need to effect an economic shutdown until we receive the eagerly-awaited coronavirus vaccines, or should we try to stimulate the national economy right away? Professor Parker is a renowned researcher and an expert in government stimulus issues for several decades. "Well," the scholar concludes, "I'm convinced and believes it's actually the former."

Speaking about the issue, Ms. Esty Dwek, who's the Natixis Investment Manager's head of global market strategies, had this to say: " We generally expect that the equity market will stumble as investors begin to face up to the possibility of higher individual and corporate tax rates that the Biden administration is likely to push through later in the year. She, however, adds that the existing necessity overrides the long-term interests. "Of course," she was quoted saying, "as you know, there's widespread worry about the impending inflation. However, I personally don't think this will happen soon."

Joining in this positive note, the Schwab Center Vice- President of Trading and Derivatives, Mr. Randy Frederick, notes that President Biden's stimulus plan "is directly in line with the widespread expectations of the market." "Likely," Mr. Frederick said," other packages on infrastructure and priority spending will soon follow the stimulus plan." This is excellent news to suffering sectors of the economy that have borne the coronavirus pandemic's brunt for more than a year.

Further, on the issue, it's worth noting that researchers don't quickly agree on the question of whether those who receive the government stimulus checks will actually spend it immediately. For example, the New York Federal Reserve Bank carried out a survey in December 2020, asking people what they'd do with a sudden 10% boost in income. Interestingly, just 19% of the respondents indicated that they'd either spend or donate the money. Even more interesting, the rest of the respondents said they'd either invest, pay debts or save. This means they won't spend immediately.

Yes, there seems to be a potent argument to target the lowest income segment using other methods- boosting the food stamp program and increasing unemployment benefits. "Moreover," according to another scholar, "it's advisable to provide a full credit on earned income tax. Once this is done, the stimulus payments will work best for the primary target groups." He says that stimulus payments can only boost growth if people are slow to resume spending even after the expected massive vaccination rollout.

In a recent analysis of the government stimulus program, researchers from the Brookings Institution said that the greatest boost to the gross domestic product would come from giving aid to most financially vulnerable families. On its part, the JP Morgan Chase Institute recently-in December 2020- scrutinized 1.8 million customer checking accounts. This is usually the first place where households or families receive and spend their money.

The researchers discovered that those who earned the lowest incomes showed the most significant gains in their findings. Regardless, they had the fastest depletion as well. On the other hand, the highest earners (or households that make over $68,000) tended to hold assets and build on them. This research concludes that the poorest people were likely to spend their paychecks as soon as they received them.

But what do some of the most recent statistics really say? Interestingly, The GDPNow Tracker indicates there was a 7.5% growth pace in the 4th quarter. This seems to be quite impressive. Moreover, the job situation in the US appears to improve tremendously by the day.

The verdict? Many analysts claim that recent data- like what's illustrated above- has continued to defy expectations and changed everything that seemed to be true only a few months back. So, is there a need for such a hefty cash infusion going into trillions of dollars, one year after the Coronavirus pandemic engulfed the nation?

Well, the Jury's clearly out.

Worries That Biden's $1.4 Trillion Package Might Miss The Target

In an unexpected fresh dilemma, US President Joe Biden's much-touted $1.9 trillion economic stimulus package is facing what some have called "a baptism with fire"- running against opposition despite holding promise for millions of desperate Americans battered by the deadly coronavirus effects.

Others fear that the President's well-meaning plan might end up benefitting the "wrong segment of society"- those who don't need it. This means it won't help the much-targeted group- the vulnerable. Despite this, the Biden administration is determined to keep its promise to offer $2,000 payments to vulnerable Americans,, revive a battered economy, and target low-income, unemployed people with this package.

Noting the raging questions and doubts about whether the money would go to the right people, President Biden recently said he's willing to enter a discussion with various stakeholders to ensure those who don't need it don't access the funds. On a positive note, likely, many needy American households will quickly spend the money received. This should instantly boost the economy- we can compare it to a situation where the government uses the payments to pay debts or boost savings. Of course, the latter is far worse.

According to the new administration's official proposals, the government plans to send $1,400 checks to the most vulnerable people- those who've borne the brunt of the pandemic effects for a long time. As noted, the President has already indicated he's willing to discuss eligibility issues with key officials and other parties. Comparatively, the previous round of the stimulus action in December 2020 dispatched $600 checks to those earning a maximum of $75,000- this translates to $150,000 for each of these households.

Interestingly, two studies that recently released their results suggest that the previous income threshold was probably too high to encourage the most spending (relating to the costs). This finding may be factored in against the popular idea that direct payments are primarily useful for boosting economic growth. Regardless of these factors, we should note that policymakers repeatedly advise consumers to limit the spread of the Covid-19 virus primarily by staying at home. This means that -even with direct payment to such vulnerable groups- few of the beneficiaries will readily spend on ordinary activities like traveling or going out for meals. Overall, even with the government's best efforts to reach the vulnerable, it's clear that the checks could still fail to get to many needy households.

In another survey by the US Bureau of Labor Statistics, most Americans would immediately spend their stimulus paychecks. 2/3 of those interviewed said that they'd use the money on food. What does this mean? It clearly indicates that the checks would actually reach the majority of the vulnerable people.

Claudia Sahm, who is a Federal Reserve expert economist on the impact of stimulus payments, said this: "One major issue regarding the matter of narrowing the paychecks is this: the government simply doesn't have all the relevant information. Think of people who lost their jobs only recently. Think of others who had a massive pay cut just the other day. Incredibly, such people may not qualify for the stimulus paychecks. Why? Their situation changed too recently. They are, therefore, unlikely to reach the crucial eligibility threshold. In a nutshell, they won't qualify."

It doesn't end there- you might find that some relatively higher-earning individuals may (ironically) be saving in a limited way, practically living from hand to mouth. Hence, while many beneficiaries may use the money to pay debts instead of saving, the overall effect is that they'll be in a better financial situation than before. This is what economists call "financial resilience." During crisis moments, this is quite important to the dynamics of the broader economy.

Parting shot? Do you seek the biggest bang for your buck? Give the money to those who have the lowest balance in their bank account. Unfortunately, according to Mr. Sahm, the federal government has no such information regarding the potential beneficiaries. Instead, the expert vouches for one-time paychecks, and automatic stimulus payments that he says are way more beneficial. He also warns that the possible fixation with targeting the "right people" might end up denying the same target group of the much-needed resources.