Charlotte, NC – Based on the data, the unemployment rate is at its highest level since the Great Depression. The US economy shed 20.5 million jobs in the month of April. The unemployment rate now sits at 14.7%.
The Associated Press reports that 5.1 million Americans also had their hours reduced in April. Across the country, nearly every industry has been affected by the coronavirus. Some are projecting that the employment issues will continue for quite some time.
The Congressional Budget Office (CBO) projects that unemployment will hold around 15% through the second and third quarters of the year. The CBO then projects that the economy will start seeing a recover in the 4th quarter with unemployment starting to decline. The projection from the CBO is that unemployment will remain around 9.5% at the end of 2021.
This is in stark contrast to what many in the administration have proposed as a potential quick recovery of the economy. The CBO does not have the most accurate track record for it’s projections. Across the internet there are multiple sources that discuss this.
The economic affects of coronavirus will linger for some time but will rely on some specific components. The first will be what people consider normal. Will this be a new normal or will people strive to get back to the pre-coronavirus normal? There’s also the consideration to be given of when people will start putting faith into going back out into their community to start the normal process.
States across the country have set varying proposals for opening, with many projections of any sense of normal being in June. Economic data from some of the early states who have opened should be available from the month of may giving some insight into what to expect nationally as states open.
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