The United States economy is one of the most developed economies in the world, and the nation also has one of the world’s most advanced financial systems to cater for their fast-paced economy. The U.S. economy has major significance on a global scale, since it is one of the richest nations, thus, a decline in their economic stability creates a global effect that is usually evident. The onset of the COVID-19 pandemic caused economic tension globally, but the U.S. managed to create ways to adapt, and improve its economy (Amedeo, 2021). Furthermore, their government deals with all issues affecting the economy, from the superficial to the underlying factors, which refers to inflation, increase in unemployment and interest rates that are unfavorable to the citizens. Despite the negative effects of the COVID-19 pandemic, the pandemic forced economists to adapt, thus leading to a highly competitive market that is dynamic in nature. Still, there are many challenges that the U.S. is facing that have an indirect or direct effect on the economy. These challenges include job mismatches, low number of qualified workers and the unpredictability of the pandemic.
First, the U.S. is dealing with job mismatches, whereby employees are assigned work above their skill level and experience. There has been a rising case of people seeking employment in the workforce, but coming short with regard to matching the high demands, and standards set forth by corporations (Saint Joseph University, 2022). The COVID-19 pandemic led to companies being forced into prioritizing profits to cope, and keep their workforce intact. Also, corporations have to prioritize profits for sustainability, making the issue of job mismatches a loss to the employers and employees. This predicament has led to decreased urgency for job seekers, while others fail to capitalize on potential business opportunities. The issue of job mismatch has long term implications on the U.S. economy, because as much as their is integration of technology in the economy, it is still dependent on human labor.
Labor shortage has been reported to being on an increase in the U.S, which is ironic considering the high demand for human resources in some corporations. The COVID-19 pandemic resulted in multiple workers being fired, and the older generation forced into retirement (OECD, 2022). Corporations used performance as a criteria for firing employees, and due to the pandemic, the criteria were strict. Thus, it is crucial that employees receive compensation for their losses in adjustment to the pandemic. It is important to note that working at home has affected many businesses that are dependent on the corporate sector workers.
The uncertainty created by the COVID-19 pandemic makes it difficult for the economy to regain stability. Issues such as the emergence of new coronavirus variants lead to inevitable restrictions, which have put businesses and corporations in unpredictable patterns, forcing some businesses to close. Families, job seekers, and formerly employed people have faced challenges, which the U.S. government has been trying to resolve (Saint Joseph University, 2022). The government has collaborated with the corporate sector and its citizens to deal with these issues, but have been facing inconsistencies as a result of the pandemic. Until a definite solution is found, the inconsistencies created by the COVID-19 pandemic will remain a persistent issue.
In summary, the U.S. economy, despite its dominance, has been facing challenges that include job mismatch, low number of potential employees and the inconsistencies created by the COVID-pandemic. The federal government has developed strategies and incentives to support the many citizens facing poverty due to the pandemic. This has been through providing citizens with cheques for basic needs, for instance. Amongst all the factors negatively affecting the United States economy, the COVID-19 pandemic creates a more complex problem, as the other issues can be resolved gradually under positive strategies.
Amadeo, K. (2021, October 6). US economic outlook for 2021 and Beyond. The Balance. Retrieved January 22, 2022, from https://www.thebalance.com/us-economic-outlook-3305669
OECD. (2022). The Conference Board Economic Forecast for the US economy. United States Economic Snapshot. Retrieved January 22, 2022, from https://www.conference-board.org/research/us-forecast
Saint Joseph University. (2022). 3 Major Issues Facing the U.S. Economy. https://www.sju.edu/news/3-major-issues-facing-us-economy