The economy added 850,000 jobs in June, according to newly released numbers by the Labor Department. That exceeds the anticipated number of 700,00. And the biggest gains were in the leisure and hospitality sector. What can government do to help with even bigger gains as the economy continues pandemic recovery? CEI experts offer advice.
Ryan Young, CEI Senior Fellow:
“June’s jobs report is fresh evidence that the COVID economic recovery does not need more government spending. It needs more vaccinations and fewer regulatory obstacles. The boom in leisure and hospitality jobs shows that vaccination rates are now high enough for many people to feel safe going to events and summer vacations that last year would have been extremely dangerous. Deficit spending is already at a record high, and there is no need to add to it further. Policymakers should instead lighten permit and paperwork burdens, lower trade barriers, and allow easier access to capital so new businesses can start up, and existing businesses can adapt to the new conditions.”
Sean Higgins, CEI Research Fellow:
“June’s gain of 850,000 jobs can largely be attributed to the continued rollback of state and federal restrictions related to the Covid-19 epidemic. The Labor Department found that 6.2 million people reported in June that they were unable to work because their employer was closed or lost business due to the pandemic, down from 7.9 million reporting the same problem in May. The biggest gains were seen in the leisure and hospitality industry (343,000 jobs) and public and private education (269,000 jobs) both reflecting trends of people getting out of their homes and back out in public. The data shows that best remedy for the economy is to simply let it heal itself by having government get out of the way.”