Vaccines Might Ensure Work for Americans as U.S. Economy Recovers
- Skepticism abounds as economists worry of labor market scars
- Restaurateur Bajaj sees only gradual return to normal
It’s a bold forecast that some say borders on fantasy: Wall Street banks and Federal Reserve officials see powerful employment gains over the next three years that evade the curse of past recessions.
If they’re right, millions of Americans will leap back into the workforce as soon as vaccines against the coronavirus roll out. If they are wrong, the U.S. enters another so-called jobless recovery where payroll gains lag a pickup in economic growth and production.
The optimists, including Federal Reserve Vice Chair Richard Clarida, say this economic crisis is different because it was caused by something more like a natural disaster than a financial shock. Once the pandemic has subsided, pent-up demand for services, entertainment, and even travel will unleash and companies will hire or rehire.