The labor market is finally starting to see improvements after COVID-19 swept through the world. Although unemployment claims are still well above the claims that were filed during the 2007 recession, the numbers are starting to decline. This means that more people are getting back into the work force and the economy is starting to return to its state before the virus. Even though people are getting hired again, the demand for most businesses is still low, so these companies are unable to pay their employees and some are being forced to shut down. Consumer spending is seeing a little increase but is still 4% lower than it was before the pandemic. June was a great month for potential employees with an increase of more than 4 million jobs. This gives the community hope that things are starting to turn around and get back to where they should be. This will be a long process since nobody is certain on when or if this virus will be manageable so many people are still skeptical about going out in public.
https://www.reuters.com/article/us-usa-economy-idUSKBN26M650
I completely agree that the economy is coming back. I would go as far as saying the stock market should hit all time highs within the next 6 months at MOST. Jobs are opening back up across the country for example waitress' with the reopening of indoor dining in most states.
ReplyDeleteThe process is going to be long but the economy is beginning to adjust to current situations. For example, the are a lot of remote working positions beginning to open up, and we can see that even if stock markets aren't growing, they are falling at a lower rate than they were before, which shows that investors are slowly becoming more confident.
ReplyDeleteI think on a individual basis, there are certain sectors that are looking as though they can continue their trajectory and hopefully get back to their pre-covid levels of output and valuation. However, this growth will likely need to be sustained into Q1 2021 for job hiring to pick back up to pre-pandemic levels.
ReplyDelete