Tomorrow the U.S. Bureau of Labor Statistics will be releasing the unemployment rate for April 2020. It is expected to hit a peak and will be a true representation of the number of families affected by the pandemic. The number of unemployed is expected to be shocking. Media will be splattered with doomsday predictions and headlines of a gloomy future.
It is important to know that there is hope. Businesses are starting to reopen and many will be reemployed. Last month 700,000 people lost their jobs in the US and unemployment increased to 4.4% This number will be much higher tomorrow. Experts are predicting that there will be a 15%-20% unemployment rate in the US. Some say it may even be greater.
J.P. Morgan chase bank predicts a 20% unemployment rate. Merril Lynch predicts 15.6% and Goldman Sachs predicts 15%.
How was unemployment over the past few weeks?
This graph shows a breakdown of weekly unemployment filings:
The only thing positive at the moment is that this graph shows that unemployment filings have decreased every week in April.
Carlos Rodriguez, CEO of Automatic Data Processing (ADP) says:
“It’s possible that companies are already anticipating some kind of normalization, opening in certain states and starting to post jobs.”
He says that companies are not cutting jobs anymore. This could be due to the Payroll Protection Loans that companies are receiving to keep their employees employed or it could be due to the anticipation of reopening. Whatever the cause we hope the trend continues and that May holds decreases in unemployment.
What is expected in the future?
Most financial experts are predicting that unemployment will not be high for long. This is just temporary. The length of unemployment is expected to be much shorter during this pandemic than it was during the Great Recession and the Great Depression. See below.
Unemployment is high, but the weekly filings are decreasing and the length of unemployment is not predicted to be long.
Although tomorrow's headlines of April's unemployment rate will be shocking, don't let it scare you! There is light at the end of the tunnel. Businesses are starting to reopen. Let's do our best to help small businesses in our community and keep a positive state of mind. Hope is around the corner.
If you are looking to buy or sell a home, contact South Florida's Real Estate Experts at Prestige Waterfront Realty at 954-830-7000. Flagship office at Galt Ocean Mile in Fort Lauderdale. Trust only the best with this large step in your life.
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