Current Economic Situation and Outlook Economic activity expanded at a robust 5 1/2 percent pace last year, reflecting progress on vaccinations and the reopening of the economy, fiscal and monetary policy support, and the healthy financial positions of households and businesses.
The rapid spread of the Omicron variant led to some slowing in economic activity early this year, but with cases having declined sharply since mid-January, the slowdown seems to have been brief. The labor market is extremely tight. Payroll employment rose by 6.7 million in 2021, and job gains were robust in January.