US unemployment rate may persist for long and become “eternal”

Economists called the unemployment rate in the US eternal, this opinion was expressed by experts after a study by Bloomberg Economics.

US unemployment rate may persist for long and become “eternal”

The reason for this is the “redistribution shock”, a phenomenon in which new jobs appear in some sectors and their number decreases in others. The problem is that it takes longer to create new jobs.

According to the authors of the study, even large-scale incentive programs will not be enough to reduce unemployment: monetary in the execution of the Federal Reserve System (FRS), which carries out quantitative easing of unprecedented volume (repurchase of securities from banks), and fiscal in the execution of the government.

Thanks to these efforts, a sharp recovery in the national labor market is possible in the medium term, but it will not last long.

It is noted that in recent weeks in the United States there has been a decrease in the number of new applications for unemployment benefits compared with a record spring level, but this does not mean that the layoffs have ended. Now high-ranking employees fall under the cuts.

The material says that the “redistribution shock” caused about 30 percent of layoffs in recent months, another 50 percent accounted for the consequences of the economic blockade. 20 percent of the layoffs were caused by high unemployment benefits, which is why laid-off workers do not want to seek a new job.

Experts say that now the government will need to develop a more flexible approach to supporting the economy, which will be based on the allocation of assistance only to those enterprises that in normal situations would show good financial results.