The United States has seen economic decline every winter but due to the extremities in this year's weather, the polar vortex could have a significant effect on the economy, analysts predicted.
According to a Barron's Magazine report, the polar vortex in 2019 could be severe enough to allow for negative economic effects on the United States economy. Heavy snowfall could have the capability to block roads and largely deform commercial railways.
Furthermore, if extreme cold and heavy snowfall persist, flights could be hampered and commercial waterways could be frozen. Experts predict that severe effects of the polar vortex could keep shoppers from stepping out.
Shoppers aren't the only ones who will feel the cold winds brought about by the polar vortex. It is expected that a huge number of employees will go on leave due to the cold and snow, potentially prompting some businesses to close down for a couple of days.
Restaurants are some of the businesses that could get heavily affected by the polar vortex. Falling temperatures could stop families from going out to eat and there may be a lack of restaurant waitresses and employees during the winter season.
Just like the polar vortex in early 2014, employment, construction, and vehicle sales were affected. The same scenario could take place this year if temperatures drop and heavy snowfall blankets the country.
Justin Bloesch and François Gourio of the Federal Reserve Bank of Chicago discovered that extreme weather during winter has led to higher unemployment rates in the past. Home-building projects are also halted and some retail stores have recorded significantly lower sales and employment rates.
While it may be too early to predict a polar vortex in 2019, experts have stressed the importance of preparing for unexpected changes in weather. It is expected that extreme weather impacts will be felt sometime March.
Meanwhile, despite the colder weather, the United States Department of Labor reported that the country has added 304,000 jobs in January. According to BBC News, the Department of Labor said the jobs were added to the following sects: health and care, warehousing and transportation, construction, and leisure and hospitality.
Chief Economist at PNC Bank, Gus Faucher said of the development, "This is a solid report, particularly given how worried people were." Faucher referred to the World Bank's early January prediction that there will be a global economic slowdown this year.
Demands in hiring increased to 4 percent, following the federal government's partial shutdown. Analysts believe that the small but significant progress will help ease concerns about how the U.S. economy will perform in the near future.
