Well, the markets are once again waiting for tomorrows unemployment rate for April 2020 that will be released by the U.S. Bureau of Labor Statistics. It will hit a peak this country has never seen before (which can be scary given we keep hearing people talk about unemployment rates that rival the Great Depression), with data representing real families and lives affected by this economic slowdown. The numbers are going to be alarming to us. The media headlines will present a doomsday scenario. However, there is hope that as businesses reopen, most people will become employed again soon.
Last month’s report indicated we initially lost over 700,000 jobs and the unemployment rate quickly rose to 4.4%. With the release of the new data, that number will climb even higher. Experts forecast this report will show somewhere between a 15% – 20% national unemployment rate, and some anticipate that number to be even greater (see graph below):
So, what’s happened over the last several weeks?
Here’s a breakdown of what this spring’s weekly unemployment filings have looked like:The good news shown in the above graph indicates the number of additional unemployment claims has decreased week over week since the beginning of April. Carlos Rodriguez, CEO of Automatic Data Processing (ADP) says based on what he’s seeing:
“It’s possible that companies are already anticipating some kind of normalization, opening in certain states and starting to post jobs.”
He goes on to say that this doesn’t mean all companies are hiring, but it could mean they are at the point where they’re not cutting jobs anymore. Let’s hope this trend continues.
Everyone wants to know what will the future bring?
Many experts predict that while our unemployment is high right now, it won’t be that way for long. The length of unemployment during this crisis is projected to be significantly shorter than the duration seen in the Great Recession and the Great Depression.So, while forecasts may be high, the numbers are trending down and the length of time isn’t expected to last forever.
I know it isn’t easy, however don’t let the headlines rattle you. There is light at the end of the tunnel as we begin to safely reopen businesses throughout the country. The truth is unemployment affects our families, our businesses and our country, however it is important to rally around those impacted and do our part to support them through this tough time.