How Biden’s Economy Will Impact Energy Demand
In a recent report, the EIA projected that total U.S. energy demand will likely return to 2019 levels by 2025. However, that projection depends largely on the pace of U.S. economic recovery, including job growth and spending. Why? Because those factors impact the number of retail facilities, manufacturing plants, and office buildings open as people work. The more buildings are in use, the greater the energy demand to power, heat, and cool them. So, how is the Biden economy doing so far? Read on to find out.
The State of Biden’s Economy
Recently, President Biden announced that, “We’ve created more than 1.5 million jobs… the most in the first 100 days of any president on record.” Indeed, since January, the US economy has added 1,572,000 jobs, according to the US Bureau of Labor Statistics. This is the most jobs created in the first 100 days of any presidency since we began keeping track in 1939.
It is important to note that this job growth comes from a lower starting point. In April of 2020, unemployment hit its highest level since the Great Depression due to the COVID-19 pandemic, with over 22 million jobs lost in just two months. President Biden benefitted from a sharp resurgence in economic activity after the crash caused by the onset of the pandemic.
Biden also noted that, “The three months before I got here, our country was creating roughly 60,000 jobs a month… we’ve been creating on average 500,000 jobs per month.” The economy is continuing to bounce back from the pandemic under President Biden, likely due to his administration’s emphasis on getting Americans vaccinated. Greater than 530,000 jobs were added in February, while 770,000 were added in March.
Finally, Biden’s American Rescue Plan, which was passed by Congress in March, sent $1,400 per-person stimulus checks to qualifying households. It also expanded unemployment benefits for those in need, offered grants and loans to hard-hit small businesses, and provided $350 billion to state and local governments.
The economy is undoubtedly recovering from its pandemic swan dive, and with lockdowns lifted across the United States and many big cities like New York now fully open, energy demand is bouncing back as well. Expect energy demand to continue to increase as more people get vaccinated and the possibility of further COVID-19 outbreaks decreases.
In addition, as energy demand increases, expect energy prices to increase as well. Check out this article to see how you can use energy efficiently in your buildings to keep your utility bills low.