Unemployment Rates Fall as Economy Pushes to Reopen

Economy is Headed in the Right Direction

After the May job reports were released, the numbers showed the Coronavirus pandemic certainly hurt the economy, but not as heavily as predictions forecasted. Though unemployment has risen significantly since the outbreak, May unemployment has dropped to 13.3%. This is an improvement from April but there is still a long way to go. The Federal Reserve has taken many precautions to protect the nation’s financial stability by data revealing. These measures may help reduce the impact the nation was expecting to feel. 

Positive News for Americans 

The Bureau of Labor Statistics reports 2.5 million jobs have become available for Americans across the country as businesses begin to reopen and the economy begins to return back to normal. This has helped drive unemployment down from 14.7% in April to 13.3%. In a ripple effect, the Dow Jones shows a very promising increase of over 800 points in premarket activity leaving it at just over 27,000 after this past weekend. With that being said, Congress is not finished supporting the country’s businesses and their ability to stay afloat post-pandemic. To keep the economy moving in a positive direction, Congress is considering the extension of unemployment payments along with additional federal aid, spending $3 trillion dollars. Therefore, there is more to come with this decision, and we will continue to keep you updated.

Furthermore, these reports offer positive updates after a long few months of unemployment. There still is a long way to go in the recovery of the U.S economy. The effects of the pandemic have cost the nation $8 trillion in economic growth, and that number continues to grow. By 2030, it is expected that the U.S may spend up to $16 trillion. As reports continue to come out, the predicted unemployment numbers and jobless claims have turned out to be much higher than the actual outcomes. Nonetheless, the impact is still large and will take time and resources to move toward economic recovery.

Need more information regarding COVID-19 resources? Visit our site to learn more.