Next phase of US recovery will be hardest

Long-term issue: Employment is returning slowly for service sector jobs, including those in leisure and hospitality, according to Mester. — AFP

NEW YORK: The US labour market is recovering more slowly and it could take two to three years for the unemployment rate to return to levels seen in February as companies adjust to smaller staff and workers retrain for new careers, according to Cleveland Federal Reserve Bank president Loretta Mester.

Low-income workers, black workers and hispanic workers, as well as those with lower levels of education, bore the brunt of pandemic-related job losses and could face longer spells of unemployment, Mester said during an interview with Reuters.