By guest author Nelson D. Schwartz from the New York Times. He has covered economics since 2012. Previously, he wrote about Wall Street and banking, and also served as European economic correspondent in Paris. He joined The Times in 2007 as a feature writer for the Sunday Business section.
The economy picked up speed last quarter, shaking off some of the lingering effects of the pandemic as consumer spending grew, bolstered by government stimulus checks and an easing of restrictions in many parts of the country.
The Commerce Department reported Thursday, April 29, 2021, that the economy expanded 1.6 %in the first three months of 2021, compared with 1.1 % in the final quarter last year.
On an annualised basis, the first-quarter growth rate was 6.4 %.
“We’re running on all cylinders in terms of economic activity,” said Scott Anderson, Chief Economist at Bank of the West in San Francisco. “People are anxious to get out and return to their normal lives, and there’s pent-up demand.”
“It doesn’t hurt that the stock market is at a record high and the housing market is strong,” he added. “Consumers have built up roughly USD 2 trillion in excess savings.”
Overall economic activity should return to prepandemic levels in the current quarter, Mr. Anderson said, while cautioning that it will take until late 2022 for employment to regain the ground it lost as a result of the pandemic.
Still, the labour market does seem to be catching up. Last month, employers added 916000 jobs and the unemployment rate fell to 6 %.
Tom Gimbel, chief executive of LaSalle Network, a recruiting and staffing firm in Chicago, said: “It’s the best job market I’ve seen in 25 years. We have 50 % more openings now, than we did pre-Covid.”
Hiring is stronger for junior to midlevel positions, he said, with strong demand for professionals in accounting, financing, marketing and sales, among other areas. “Companies are building up their back-office support and supply chains,” he said. “I think we’re good for at least 18 months to two years.”