(Adds further comments, detail)
WASHINGTON, March 30 (Reuters) – The coming summer could see millions of Americans rehired if current trends hold and progress against the pandemic continues, Atlanta Federal Reserve bank president Raphael Bostic said on Tuesday, describing that as one of the “upside risks” he is watching.
“We could see a burst of activity and performance coming into the summer which could lead us to see even more robust recovery,” Bostic said in comments to the Atlanta World Affairs Council. “A million jobs a month could become the standard through the summer.”
The government on Friday will release the payrolls report for April and analysts are expecting a blowout number — perhaps the first of a few to come as more states ease coronavirus restrictions and more people become comfortable resuming close- contact activities after a year of social distancing.
Economists polled by Reuters see nonfarm payrolls jumping 650,000 and the unemployment rate falling to 6%.
Recent weeks have seen a jump in some of the activities hardest hit by the pandemic. Air travelers cleared by the Transportation Security Administration are nearing 60% of 2019 levels on a weekly basis and have been climbing steadily.
Activity at open restaurants, particularly in states with warmer weather and few restrictions, like Texas and Florida, has for intents recovered to the pre-pandemic level.
The recent increase in coronavirus cases remains a national concern. But the pace of vaccines has also increased.
So far, Bostic said, he remains optimistic that the recovery is starting to reach some of those who bore the brunt of last spring’s crash.
“People are going to want to go out,” Bostic said. Businesses in his southeastern district “particularly in the hospitality and leisure side…starting to see bookings that are approaching where they were pre-COVID and some businesses are even exceeding that…That is a really positive sign.”
Reporting by Howard Schneider; Editing by Aurora Ellis
