3.5 million jobs are expected to be lost in the US in 2021 and a new study suggests that US productivity will fall by more than a third.
The Economic Policy Institute (EPI), a left-leaning think tank, published a report this week showing that the number of jobs created since the election will fall from 9.1 million in 2020 to just over 7.4 million in 2021.
It also said the number in the labour force will drop by more.
“This is the worst case scenario, and it’s really going to impact a lot of people,” said Michael Tesler, chief economist at the EPI.
“People are going to be scrambling to find jobs, they’re going to have fewer options for how they live their lives.”
This new study from the think tank found that Trump’s policies will reduce job creation by more over a 20-year period, by 1.4m.
In 2020, Trump’s policy of reducing taxes by up to 25 per cent will cause job growth to fall by over 5 per cent.
But that will fall to just under 1.1m jobs in 2021 as the tax cuts expire and companies have to adjust to a new environment.
“The biggest driver of job growth is going to come from people being able to do their part in the economy,” Tesler told Business Insider.
“We’re going into an economy where they’re less able to get into the workforce, and so we’re going through the recession of the future.”
The EPI found that there will be a loss of around 700,000 jobs over the next two years.
These jobs are being lost at a pace that is more than double the US economy’s growth rate for the same period in the early 20th century.
Trump’s economic policy is a major part of the reason for this, said Tesler.
“What the Trump administration is doing with its tax cuts is basically going to drive down the wages of the middle class and they’re driving down productivity in the country.”
But for many workers, the effects will not be immediate.
Michael Tesler said the economic downturn is likely to have a much bigger impact on people who are currently in the workforce.
He explained that many people who have been unemployed for a while, are not going to find a new job, and this will put pressure on the workforce as well as the economy.
There are a number of different ways that this is going