Please ensure Javascript is enabled for purposes of website accessibility
Weak Jobs Report Could Spur, Slow Biden's Huge Money Package
gvw_ap_news
By Associated Press
Published 4 years ago on
May 7, 2021

Share

WASHINGTON — President Joe Biden’s promised economic comeback hit a speed bump Friday with the April jobs report, which found modest job gains of 266,000 that complicated his $4 trillion push on infrastructure, education and children.

The employment report failed to show that the U.S. economy was accelerating forward, so much as it appeared to be stutter-stepping along as the unemployment rate ticked up to 6.1%. Economists had projected roughly one million added jobs last month, and the modest hiring indicated that the $1.9 trillion coronavirus relief package has provided an uneven boost so far.

The figures present Biden with a fresh challenge at a critical moment in his presidency. He is betting that an open embrace of massive government spending will help resolve the nation’s public health and financial turmoil — and lift the political prospects for Democrats heading into next year’s elections. But the disappointing jobs numbers could also embolden his critics and stiffen the Republican resistance to the infrastructure package Biden is trying to push through Congress.

Addressing the report, Biden sought to ease concerns.

“We knew this wouldn’t be a sprint—it’d be a marathon,” he said. The pandemic relief package “was designed to help us over the course of a year, not 60 days. A year. We never thought that after the first 50 or 60 days everything would be fine. Today, there’s more evidence our economy is moving in the right direction. But it’s clear we have a long way to go.”

Biden’s opponents say the legislation actually worsened problems in at least one way, with expanded unemployment benefits that gave the jobless a reason to stay at home instead of seeking work.

The president said the jobs data don’t show that. And advocates for his plans can argue that the report shows that more spending is needed to sustain the economy.

There are also issues of supply shortages for computer chips and lumber that are holding back growth, a reminder that the world’s largest economy seldom bends perfectly to the wishes of lawmakers.

Biden’s Agenda Rests on Public Opinion of April Reports

The fate of the president’s agenda may depend on how the public processes and understands the April jobs report in the coming weeks, said Jon Lieber, a managing director at the Eurasia Group, a political risk advisory and consulting firm.

“Are the Republicans able to seize on this as, ‘This is what happens when the government gets involved in the economy and screws things up?’ Or, does the public see this as the need for more government support?” Lieber said. “That’s the argument for the next month.”

One clear takeaway across partisan lines was a need for caution in interpretation. A single monthly report can be volatile. The three-month average of job gains is still a healthy 524,000.

Michael Strain, an economist at the conservative American Enterprise Institute, noted that many businesses have said they cannot find workers to hire despite increases in hourly pay. Strain said he plans to monitor upcoming reports to see if that pattern holds in what could be a troubling sign for Biden’s vision of how to generate growth through government spending.

“If we continue to hear a growing chorus of businesses complaining about worker shortages and if wages continue to rise, then it will be tempting to conclude that a lot of the 8 million jobs we are currently missing aren’t coming back,” Strain said.

U.S. Chamber of Commerce Blames ‘Generous Unemployment Benefits’

The U.S. Chamber of Commerce, which represents businesses, put the blame squarely on the relatively generous unemployment benefits that Biden extended as part of his relief package. The group said the checks prevent people from accepting jobs.

“One step policymakers should take now is ending the $300 weekly supplemental unemployment benefit,” said Neil Bradley, chief policy officer at the Chamber. “Based on the Chamber’s analysis, the $300 benefit results in approximately one in four recipients taking home more in unemployment than they earned working.”

Jared Bernstein, a member of the White House Council of Economic Advisers, said he has heard companies say they’re struggling to find workers, but he didn’t see those concerns reflected in the jobs report. For example, restaurants and bars added 187,000 jobs last month even though workers in that relatively low-wage sector would, in theory, have an incentive to just collect unemployment.

The jobs report hinted at other factors that could strengthen Biden’s agenda. It showed losses for women, who were forced into caregiver roles for children and relatives because of the pandemic. The family demands stopped them from holding outside jobs.

Bringing Women Back to Work May be Key

There was a drop of 165,000 for women over the age of 20 last month who were holding or seeking jobs. By contrast, men saw gains of 355,000 in labor force participation.

One way to bring women back could be Biden’s plans to fund child care, create a national family leave program and expand the child tax credit through 2025 — the idea being that government action is needed to unlock the job market.

“When you start squinting at this data to figure out what is going on, it looks like you need more government to get past a labor shortage,” said Michael Madowitz, an economist at the liberal Center for American Progress.

House Speaker Nancy Pelosi cited the “disappointing” jobs report as proof that Biden’s $4 trillion agenda must be approved quickly.

“The evidence is clear that the economy demands urgent action, and Congress will not be deterred or delayed from delivering transformational investments for the people,” the Democratic congressional leader said.

DON'T MISS

What Are Fresno Real Estate Experts Predicting for 2025 and Beyond?

DON'T MISS

First California EV Mandates Hit Automakers This Year. Most Are Not Even Close

DON'T MISS

LA Dodgers Pledge $1 Million to Support Families Impacted by ICE Raids

DON'T MISS

Pakistan to Nominate Trump for Nobel Peace Prize

DON'T MISS

Vance, in Los Angeles, Says Troops Need to Stay, Blasts Newsom Over Immigration

DON'T MISS

Nuclear Diplomacy Stuck, Israel Says It Killed Top Iran Commander

DON'T MISS

Mahmoud Khalil Vows to Resume Pro-Palestinian Activism After Release From US Jail

DON'T MISS

Trump Says He Wants to Fund More Trade Schools. Just Not These.

DON'T MISS

Two Days of Terror: How the Minnesota Shooter Evaded Police and Got Caught

DON'T MISS

B-2 Bombers Moving to Guam Amid Middle East Tensions, US Officials Say

DON'T MISS

Israeli Strike on Tehran Kills Bodyguard of Slain Hezbollah Chief

DON'T MISS

Bentley the Porch-Crasher Pup Hopes for a Forever Home

UP NEXT

Voice of America Parent Terminates Over 600 More Staff in Likely Death Knell

UP NEXT

US Court Lets Trump Keep Control of California National Guard for Now

UP NEXT

Massive Security Breach: 16 Billion Passwords Leaked From Apple, Google, Facebook Accounts

UP NEXT

Hunger Strike Begins as California Prisons Hand Down Biggest Restrictions Since COVID

UP NEXT

Musk Shares Negative Drug Test Results, Challenges Media Outlets

UP NEXT

Hurricane Erick Threatens Mexico’s Pacific Coast, Rapid Strengthening Expected

UP NEXT

More US Officials Face Threats as Fears Grow Over Political Violence

UP NEXT

Protester Killed at Utah ‘No Kings’ Rally Was Fashion Designer From ‘Project Runway’

UP NEXT

‘We Will Kill You Dead’: Florida Sheriff’s Stark Warning to Demonstrators

UP NEXT

Here’s What to Expect at the Army’s 250th Anniversary Parade on Trump’s Birthday

Nuclear Diplomacy Stuck, Israel Says It Killed Top Iran Commander

4 hours ago

Mahmoud Khalil Vows to Resume Pro-Palestinian Activism After Release From US Jail

4 hours ago

Trump Says He Wants to Fund More Trade Schools. Just Not These.

4 hours ago

Two Days of Terror: How the Minnesota Shooter Evaded Police and Got Caught

4 hours ago

B-2 Bombers Moving to Guam Amid Middle East Tensions, US Officials Say

4 hours ago

Israeli Strike on Tehran Kills Bodyguard of Slain Hezbollah Chief

4 hours ago

Bentley the Porch-Crasher Pup Hopes for a Forever Home

8 hours ago

The Secret to Finding the Best Travel Bargains

10 hours ago

This Fresno Family Had Six Graduations, Ranging From Pre-K to High School

10 hours ago

Amazon’s Prime Day 2025 Levels Up With Four Days of Deals Starting July 8

10 hours ago

LA Dodgers Pledge $1 Million to Support Families Impacted by ICE Raids

LOS ANGELES – The Los Angeles Dodgers have committed $1 million toward direct financial assistance for families of immigrants impacted...

4 hours ago

Oct 24, 2024; Los Angeles, CA, USA; General view of the centerfield plaza during media prior to game one of the World Series between the Los Angeles Dodgers and the New York Yankees at Dodger Stadium. Mandatory Credit: Jayne Kamin-Oncea-Imagn Images/File Photo
4 hours ago

LA Dodgers Pledge $1 Million to Support Families Impacted by ICE Raids

President Donald Trump talks to reporters upon his arrival at Morristown Municipal Airport in Morristown, New Jersey, U.S., June 20, 2025. (Reuters File)
4 hours ago

Pakistan to Nominate Trump for Nobel Peace Prize

U.S. Vice President JD Vance greets U.S. Marines at the Wilshire Federal Building in Los Angeles, California, U.S., June 20, 2025. (Reuters/Daniel Cole)
4 hours ago

Vance, in Los Angeles, Says Troops Need to Stay, Blasts Newsom Over Immigration

A fragment falls through the sky after Israel's Iron Dome intercepted a missile launched from Iran towards Israel, amid the Iran-Israel conflict, as seen from Ashkelon, Israel June 20, 2025. REUTERS/Amir Cohen
4 hours ago

Nuclear Diplomacy Stuck, Israel Says It Killed Top Iran Commander

Columbia University graduate Mahmoud Khalil speaks to media after being released from immigration custody in Jena, Louisiana, U.S. June 20, 2025. (Reuters/Kathleen Flynn)
4 hours ago

Mahmoud Khalil Vows to Resume Pro-Palestinian Activism After Release From US Jail

Lori Chavez-DeRemer, Secretary of Labor, testifies during a House Appropriations Subcommittee on Capitol Hill, in Washington, May 15, 2025. The Job Corps program has long been the subject of debate, but it is now also a point of contention in the administration’s efforts to pull back the social safety net. (Al Drago/The New York Times)
4 hours ago

Trump Says He Wants to Fund More Trade Schools. Just Not These.

Candles and flowers adorn a memorial outside the Minnesota State Capitol following the killing of Democratic state assemblywoman Melissa Hortman and her husband Mark, in St. Paul, Minnesota, U.S., June 18, 2025. (Reuters/Tim Evans)
4 hours ago

Two Days of Terror: How the Minnesota Shooter Evaded Police and Got Caught

A U.S. Air Force B-2 Spirit bomber takes off from Andersen Air Force Base, Guam January 11, 2018. Picture taken January 11, 2018. (Reuters File)
4 hours ago

B-2 Bombers Moving to Guam Amid Middle East Tensions, US Officials Say

Help continue the work that gets you the news that matters most.

Search

Send this to a friend