The most important economic developments of the year in the country include a strong pace of job gains, a downward trend of inflation, growth in real wages and momentum in the recovery of consumer attitudes. There were historic gains for women and Black workers as well.
The level of US real gross domestic product (GDP) this year even exceeded some pre-pandemic forecasts, including that of the Congressional Budget Office and the International Monetary Fund.
Sound household balance sheets and a strong labour market are the primary drivers of US consumer expenditures, which continue to grow at a pace close to the average among prior expansions, the blog noted.
The unemployment rate has, to date, stayed below 4 per cent for 22 straight months, a run not seen in more than 50 years. This is especially remarkable given the fall in inflation, it observed.
In the year ending in November, real wages grew by about 0.8 per cent for all workers and 1.1 per cent for the 80 per cent of workers who are production and non-supervisory workers. Further, wage inequality fell.
The year saw the highest rate of prime-age women participating in the labour force on record since 1948.
The previous high of 77.3 per cent in April 2000 has been surpassed in each of the last eight months. The record labor force participation of this group has served to boost incomes of American households and keep consumer spending strong, the blog added.
ALCHEMPro News Desk (DS)
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