Reuters
As Fed contemplates a move, Democratic states lag furthest in jobs recovery
Hopes to restore U.S. employment to its pre-pandemic level, an aim of the Federal Reserve and the Biden administration, now rest on a recovery of jobs in New England and California, a potentially troubling fact for the president’s Democratic Party ahead of critical midterm elections and as the Fed plots a possible turn to tighter monetary policy. Data released on Friday show that through October employment in states with Republican governors was close to 99% of what it was in February of 2020, while Democratic-led states lagged, at roughly 96%. While state-level estimates can be volatile, particularly month to month, the apparently larger remaining job shortfall in Democratic-leaning areas echoes the choices – and political divisions – that emerged early in the pandemic.
