Last Friday, the Bureau of Labor Statistics (BLS) released their latest jobs report. It revealed that the economic shutdown made necessary by COVID-19 caused the unemployment rate to jump to 14.7%. Many anticipate that next month the percentage could be even higher. These numbers represent the extreme hardship so many families are experiencing right now. That pain should not be understated. However, the long-term toll the pandemic will cause should not be overstated either. There have been numerous headlines claiming the current disruption in the economy is akin to the Great Depression, and many of those articles are calling for total Armageddon. Some experts are stepping up to refute those claims. As Josh Zumbrun, a national economics correspondent for the Journal explained, “News stories often describe the coronavirus-induced global economic downturn as the worst since the Great Depression…the comparison does more to terrify than clarify.” So, what makes our current situation so different? This was not a structural collapse of the economy, but instead a planned shutdown to help mitigate the virus. Once the virus is contained, the economy will immediately begin to recover. Former Federal Reserve Chairman Ben Bernanke, who has done extensive research on the depression in the 1930s, explained, “The breakdown of the financial system was a major reason for both the Great Depression and the 2007-09 recession.” He went on to say that today, “the banks are stronger and much better capitalized.” The nation’s collective heart goes out to all. The BLS report, however, showed that ninety percent of the job losses are temporary. In addition, many are getting help surviving this pause in their employment status. During the Great Depression there was no government-sponsored unemployment insurance or large government subsidies as there are this time. This assistance is providing much relief until most can go back to work. We should look at the current situation for what it is – a predetermined pause placed on the economy. DM me so I can share the latest unemployment data with you and discuss how it impacts our local market. #unemployment #covid19 #expertanswers #stayin https://www.instagram.com/p/CAG-54ogEXX/?igshid=k7y3fh5rkznl