Free Essay. Summary of Patricia Cohen's Article

Patricia Cohen's article, "U.S. Added 273,000 jobs in February; Unemployment at 3.5%," examines the possible economic effects of the amassed outbreak of Coronavirus. The main argument is that for the second month, the American economy gave out many jobs, which is impressive. However, these efforts are stifled by the coronavirus outbreak, which has shaken economic confidence. The Department of Labour provided positive encouragement. The revisions from the data indicated that the government added 85,000 jobs, and the rates of unemployment rates have reduced significantly (Cohen). The participation in the labour force has been steady while the average hours of working Americans are up to 34. Cohen claims that the report is proof of how much momentum the American economy was before the Coronavirus outbreak. Hiring was higher in social assistance, healthcare, and education. Financial and professional services increased their ranks, and construction was helped out by the warm weather. State and federal governments added employees, including many temporary censuses hires. The market has been gripped with anxiety that has affected the American economy and the global economy. The outbreak of the virus is an indication of the progress the American economy was making before everything turned wrong.

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The approximate payroll increase of the government is based on surveys of organizations finalized in the mid-month. At the time, the main sentiment was that the economic and health effects would be contained, and America would not be affected. Cohen also argues that a clearer picture of the impact on the labour market from the disrupted travel, dining, entertainment, and supply chains should become more evident in the next months. The main risk is that the market will exaggerate a significant number while downplaying a lot of things. There is possibly reduced unemployment in the most vulnerable sectors, such as transportation, travel, entertainment, and hospitality. Airlines have felt the most effective of the outbreak of coronavirus. The United Airlines have announced that it imposed hiring freeze until June, postponing the scheduled merit raises and inviting workers to apply for unpaid leave (Cohen). The number of postponed or canceled conferences has increased, which hurts the convention centers, hotels, stores, and restaurants that cater to visitors to the events. The underlying economy has shown vulnerabilities. The uncertainty abroad, sluggish growth, and the maturing labour market at home have led to the growth of jobs even before the alarms of a worldwide epidemic. Cooling the creation of employment is expected only to increase. Business investments have reduced in the last months, and wage growth has also decreased considerably.

Opinion on Patricia Cohen's Article

Businesses demand certainty, which involves managing the best way they can. The conflicting economic signals underline the need for better analysis and understanding of the financial situation. For companies, this means saving up inventory and reaching to the suppliers to identify the delays effectively. It also means working with clients for timelines' adjustments. Companies must not reduce hours or cut jobs. In the short-run, the outbreak could be useful for businesses because customers will be looking to bring products from China. Most companies care about certainty since it has varied implications on other vital outcomes. When businesses hold their attitudes with confidence, there is a better way of defending them. At the same time, the company take part in behaviour that is consistent with them and try to persuade others into sharing their opinion. There is a need for better management of resources and the business towards understanding what is good for the American economy. While a lot of progress has been made, there is a need for more actions to ensure success in the marketplace.

The agreement between China and the United States, to defuse the trade tensions is helpful to businesses, including producers who have suffered from retaliatory tariffs. A retaliatory tariff is a tax that the government imposes on imports to punish another country. The decisions of the policymakers at the Federal Reserve to reduce the benchmark interest rates by half percentage is proof that the central bank is dedicated to using its limited tools to handle the slowdown. The trade war between the United States and China is not suitable for the American economy. With no end in sight for the trade conflicts between China and the United States, efforts for advancing the circular economy in both economies are increasingly threatened. The retaliatory tariffs in China cover different groups of copper waste, scrap metals, and related materials such as paper pulp and fiber. The effects of these tariffs have been felt, and the United States has lost a lot of marginal profits. The federal reserve is critical for the management of the businesses, both locally and internationally. Trade wars will not stop, and this means that the best approach is undertaking sufficient measures to counter these impacts.

Works Cited

Cohen, Patricia. "U.S. Added 273,000 Jobs in February Before Coronavirus Spread Widely." The New York Times - Breaking News, World News & Multimedia, 6 Mar. 2020, www.nytimes.com/2020/03/06/business/economy/jobs-report.html