3 Reasons We'll Be in a Recession Until 2021
The COVID-19 pandemic has spurred a massive recession that's left the public reeling. Some economists were hopeful earlier in the year that the recovery would be relatively quick. But at this point, that's pretty unlikely to happen. In fact, there's a good chance our current recession will continue all the way into 2021. Here's why.
Last week, the public received some mildly encouraging news on the unemployment front: The jobless rate fell to 10.2% in July, the lowest it's been since the pandemic began. But double-digit unemployment is still problematic, and it's nowhere close to where the jobless rate sat earlier in the year.
In February 2020, the unemployment rate was just 3.5%. In March, it reached 4.4% -- already a jump, but a drop in the bucket compared to April, when unemployment peaked at 14.7%. Given that so many people are still out of work, it's unlikely that enough jobs will be recovered in the course of the next five months to bring unemployment anywhere close to pre-pandemic levels.
Source Fool.com
