Bank of America has warned that the US economy will begin to lose 175,000 jobs per month during the first quarter of 2023. This comes as a shock to many, as the US economy has been showing signs of recovery in recent months, with unemployment rates dropping and GDP growth picking up.
The bank attributes this expected decline in job growth to several factors, including the COVID-19 pandemic and the resulting economic disruption. Additionally, the end of government stimulus programs and the expiration of unemployment benefits are also expected to contribute to this decline in job growth.
This news is particularly concerning for those who were negatively impacted by the pandemic, such as small business owners and gig workers. These groups have already been hit hard by the economic downturn and are likely to be among the most affected by a decline in job growth.
Overall, this forecast from Bank of America serves as a reminder that the economic recovery is not yet complete and that the effects of the pandemic will continue to be felt for some time. It is crucial that government and business leaders continue to work together to support those who have been impacted and to find ways to spur job growth.