US Economy, Jobs and Immigration Policies: An Outlook For 2021
The Covid Hangover
The U.S. economy, without question, had an unexpectedly wild ride in 2020. The nation's GDP spiraled down 32.9% in the second quarter, the steepest contraction on record. At the peak of the crisis, about 22 million Americans found themselves out of work as unemployment spiked to a record 14.7% as reported by the Bureau of Labor Statistics. While the economy, with the help of the Federal Reserve, the U.S. Treasury and Congress, is on the mend, 2021 is shaping up to be a year of recovery but not without the COVID hangover.
US Economy, Growth, & Vaccines
In general, economists are expecting 2021 to be a stronger and less volatile year for the U.S. economy as the COVID-19 vaccine rolls out and following the passage of the $900 billion stimulus package which included $600 stimulus checks. This week, Goldman Sachs boosted its GDP forecast to 5% for the first quarter and 5.8% for the full year. That’s more optimistic than the Fed's 4.2% forecast.
The job market is also expected to rebound in 2021, according to the Fed, with the unemployment rate dropping to 5% from the last read in November of 6.7%.
President elect Joe Biden has proposed more than a dozen initiatives to be achieved within 100 days of taking office. One of the keenly watched policies is overturning the ban on the H1B visas that is highly relevant to the major employers and the IT Consulting industry as a whole.
President elect Biden also intends to bring in more stable and clear policies in place to the immigrant population such as cancel the controversial ban on people travelling on immigration to the US from some Muslim majority countries. He is expected to bring an end to the separation of children from their families at the Mexican border, and he has pledged to produce comprehensive immigration legislation that will create a route to citizenship for 11 million immigrants living illegally in the USA.
Impact of Covid-19 in the Information Technology Consulting Market:
Most industry sectors including Telecom, Retail, Financials, Manufacturing, HealthCare and utilities have all been impacted by the Covid-19 one way or another. Most of the segments were mainly being driven by increasing financial incentives and regulatory support from the governments. For example, the current utility-owned Information Technology Consulting Market is affected primarily as most of the projects across the US are delayed and are facing short-term operational issues due to the supply chain constraints and lack of site access due to the COVID-19 outbreak. In the coming days, IdeaHelix plans to focus on various vertical market spaces in detail. But beyond the signals from the market, IdeaHelix invites the leaders on the ground in various industry verticals to share the industry outlook as they see it. Please write to us at firstname.lastname@example.org or use any o four social media handles to share it.
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