Segunda-feira, 27 de Abril de 2020

Fewer than half of working Americans will have a paycheck in May as devastating coronavirus layoffs persist, economist says.

Fewer than half of working Americans will have a paycheck in May as devastating coronavirus layoffs persist, economist says.

By Carmen Reinicke.

Posted April 26, 2020 by Edward Morgan.

 
.

 

 


  • Recent job losses due to the coronavirus pandemic could mean that fewer than half of working-age Americans will be earning a wage in May, James Knightley, chief international economist at ING, wrote in a Thursday note.
  • Job losses have already contributed to slumps in consumer spending, seen in retail and housing sales reports. Given that consumption makes up roughly 70% of US gross domestic product, the effects on the economy will be severe.
  • In an election year, the widespread unemployment will likely mean that the call for politicians to reopen the economy will grow, irrespective of health advice, according to Knightley.
  • But reopening too soon lessens the chance that the US will see a swift recovery, he added.
The millions of Americans who have lost their jobs in recent weeks due to the coronavirus pandemic will have a devastating effects on the economy going forward as workers are left without pay.
Losses in April alone could push the unemployment rate to 16%, according to James Knightley, chief international economist at ING. If another 10 million Americans file jobless claims in May, that would push the unemployment rate to 22%, he said.
“Thankfully this is below the 24.9% peak experienced in 1933, but we have to remember that one third of Americans aged 18-65 are not classified as employed or unemployed – they are students, early retirement, homemakers, carers or sick,” Knightly wrote in a Thursday note.
“This leads us to yet another sobering statistic – that less than half of working age Americans will be earning a wage next month,” he said.
The estimate comes amid a huge spike in unemployment claims driven by the coronavirus pandemic. In the past five weeks, 26 million Americans have filed for unemployment insurance, a staggering record-breaking number that’s quickly dwarfed job losses seen in the Great Recession.
The effects of job losses to the broader economy could be devastating, as consumer spending makes up 70% of US gross domestic product, which is set to fall as much as 40% in the second quarter. There are already signs that consumers are spending less as the coronavirus pandemic continues and job losses increase — retail sales have slumpedconsumer sentiment has plummeted, and home sales have also fallen in the past month.
Other economists agree that the fallout is severe. Including Thursday’s losses, one in seven American workers has applied for unemployment insurance in the past five weeks, according to Heidi Shierholz, senior economist at the Economic Policy Institute.
Even though economists expect that unemployment-insurance applications will continue to fall from the March peak, they still expect ongoing job losses will add up to millions of claims in the coming weeks.
Given estimates for how much US GDP could slump in the second quarter, EPI projects that the net decline in employment — which includes how many workers were hired and how many quit jobs — could reach 30 million by the end of June.
In an election year, widespread unemployment likely means that calls for politicians to reopen the economy will grow, irrespective of health advice, according to Knightley.
But reopening the economy too soon could lower the chances that a V-shaped recovery, or a swift rebound back to pre-coronavirus levels, is possible. Knightley will be watching what happens in states that are reopening parts of their economy as soon as this weekend.
“We would assume jobless claims will fall back sharply here, but if consumers remain reluctant to go shopping or visit a restaurant due to lingering Covid-19 fears, then employment is not going to rebound quickly,” Knightley said. “It would be another signal that a V-shaped recovery for the US economy is highly unlikely.”
 
 



Compiled by http://violetflame.biz.ly from: 
 
Archives:

 
Main Site:
violetflame.biz.ly


Alternative to Google

Alternatives to YouTube
 
Jordan Sather's 
 



No religious or political creed is advocated here.

Organised religion is unnecessary to spirituality.

Excellent teachings of the masters have been contaminated by the dogmatic control of these religions.

Discernment yes; judgement does not.
If you use discernment you are free to research with an open mind. 

With discernment it is possible to reach the spirit of the letter of any writing and it is also much easier to listen to the voice of the soul that comes from the heart.
Individually you can be helped to find your Truth that is different of everyone. 


Please respect all credits.

 
Discernment is recommended.
 

All articles are of the respective authors and/or publishers responsibility. 


 

 

Like this! please bookmark. It is updated daily

 


 
 
 
Free counters!

  geoglobe1
 
 
publicado por achama às 15:29
link | favorito
Comentar:
De
  (moderado)
Nome

Url

Email

Guardar Dados?

Este Blog tem comentários moderados

(moderado)
Ainda não tem um Blog no SAPO? Crie já um. É grátis.

Comentário

Máximo de 4300 caracteres



Copiar caracteres

 



O dono deste Blog optou por gravar os IPs de quem comenta os seus posts.

.mais sobre mim

.pesquisar

 

.Junho 2020

Dom
Seg
Ter
Qua
Qui
Sex
Sab

1
2
3
4
5
6

7
8
9
10
11
12
13

14
15
16
17
18
19
20

21
22
23
24
25
26
27

28
29
30


.posts recentes

. O MEU JORNAL: 2020/06/04

. The Violet Flame Journal....

. O MEU JORNAL: 2020/06/03

. The Violet Flame Journal....

. ARTIGOS DA CHAMA VIOLETA ...

. AS TRINCHEIRAS DA BATALHA...

. How to Put Yourself First...

. BE KIND!

. The Gift of Offering Pray...

. Why would you allow your ...

. Journey to the Infinite I

. A Vision for the Educatio...

. Lightworker Mission State...

. You are Receiving Importa...

. Manifest Your Desires Fas...

. COMPAIXÃO E RESPEITO

. ACESSANDO NOVAS INFORMAÇÕ...

. SEU EU VERDADEIRO.

. O fogo é resfriado pelas ...

. Está chegando...!!!

. Rob Potter Interview – 5G...

. Why Do They Keep Warning ...

. TRUE SELF

. DIVIDIDOS MAS INTERCONECT...

. CENTRALIZE-SE NUM CORAÇÃO...

. UMA SURPRESA NO SOLSTÍCIO...

. A LUZ OFERECIDA PELA HUMA...

. ONDAS DE ENERGIAS VINDAS ...

. Para voar.

. 9 Signs You Have Mean Wor...

.arquivos

. Junho 2020

. Maio 2020

. Abril 2020

. Fevereiro 2020

. Janeiro 2020

. Novembro 2019

. Junho 2019

. Maio 2019

. Janeiro 2019

. Dezembro 2018

. Janeiro 2018

. Agosto 2017

. Julho 2017

. Abril 2015

. Março 2015

. Fevereiro 2015

. Janeiro 2015

. Outubro 2014

. Agosto 2014

. Julho 2014

. Maio 2014

. Abril 2014

. Dezembro 2013

. Março 2013

. Janeiro 2013

. Agosto 2012

. Julho 2012

. Junho 2012

. Abril 2012

. Março 2012

. Fevereiro 2012

. Janeiro 2012

. Dezembro 2011

. Novembro 2011

.tags

. todas as tags

blogs SAPO

.subscrever feeds