Signs The Us Economy Is On Its Way To A Recovery
The COVID-19 epidemic, along with state-mandated shutdowns and a disincentive to work generated by the $600 weekly unemployment benefit, caused the American economy to collapse sharply. However, as states reopen, the unemployment benefit expires, and more Americans return to work and life returns to normal, the economy is resuming its upward trajectory. There are indicators that it may swiftly return to its pre-pandemic booming condition. The following are the top indicators that the American economy is rising.
1.The Unemployment Rate Continues to Fall
The unemployment rate in the United States reached an all-time high of 14.7 percent during the early stages of the COVID-19 pandemic, which coincided with state-wide economic shutdowns. Since then, however, the jobless rate has dropped for several months in a row, most recently to 8.4 percent.
This is possibly the clearest indication that the US economy is on its way to complete recovery. Employees are returning to work in greater numbers as states continue to support the economy's recovery.
2.Job Growth Continues to Pick Up Speed
Unsurprisingly, job creation has grown as unemployment has decreased. In August, 1.4 million new jobs were generated, while one million people returned to the workforce. Compared to July's figures, the number of people on leave reduced by about seven million, while those on temporary unemployment fell by one-third.
Compared to the same period last year, average weekly wages increased by 5.2 percent. In addition, the number of "disappointed" workers declined by 130,000, or approximately 25%. The number of disgruntled workers is now around the same as it was in 2017. And, as of July, there were 6.6 million unfilled positions.
When combined with the drop in unemployment, this surge in employment creation and workforce expansion indicates a thriving labor market.
3.New Businesses Are Getting Started
Around 350,000 new business registrations were filed in June of 2020. However, over one million new firms were founded in only the months of July and August. Business applications have increased by more than 62 percent. And right now, the number of new company applications is higher than it has been all year.
The development of new enterprises suggests that entrepreneurs are optimistic about the economy's prospects in the United States and are prepared to surf the wave of a V-shaped recovery.
4.Producer and consumer confidence is rising.
Recently, the estimate of consumer confidence in the United States climbed for the third time in only four weeks. At the same time, business confidence in the United States has returned to pre-pandemic levels, according to the Organization for Economic Co-operation and Development (OECD).
5.The Real Estate Market Is Rebounding
The housing market is also improving, another sign of the economy's health. In mid-August, the National Association of Home Builders (NAHB) saw the housing market index hit an all-time high, tying the previous peak set in December 1998.
The national housing recovery is a significant indicator of healthy economic development and a quick return to a thriving economy.
6.The Stock Market Is Returning to Normalcy
The Dow Jones Industrial Average is virtually back to pre-pandemic levels, and the S&P 500 while the NASDAQ both hit new highs in September. While the stock market recovered to pre-pandemic levels in six months, it took the market five years to recover during and after the Great Recession of 2009. The rapidly increasing stock market is a strong indicator of investor confidence in a financial recovery.