Business & Investment

Is the United States returning to normal?Millions of Americans still hurt by COVID-19 say it will take years for their finances to recover

Congressmen may want to discuss an ambitious $ 1.9 trillion bailout package and think that the United States is returning to normal as COVID-19 vaccinations increase.

The job market also receded from double-digit unemployment in early spring 2020. Friday’s employment report showed that the economy added 379,000 jobs in February. This is the largest increase in 4 months.Unemployment rate is now 6.2%.

During the pandemic, the unemployment rate peaked in April, when the unemployment rate was 14.7%, reaching more than 23 million unemployed, according to the Bureau of Labor Statistics.

Volume of services provided primarily by businesses in January Stable.. The production index recorded a healthy 59.9%, less than 1 point from the previous month.

“”
That means returning to the point they were already struggling with


— Juliana Horowitz, Deputy Director of Social Trends Research at Pew Research Center, on the Meaning of Recovery

However, a new survey of 10,000 people shows how far the normalities of those affected by the pandemic are.

Over half (51%) of non-retired adults say that a coronavirus pandemic makes it difficult to reach long-term economic goals. 7% of participants are forced to postpone retirement due to a pandemic, and 17% believe they need to postpone retirement.

Juliana Horowitz, deputy director of the Pew Research Center’s Social Trends Survey, said the recovery was relative. “That means returning to where they were already struggling.”

The latest Pew survey draws a clearly mixed picture, adding more numbers to the so-called “K-shaped recovery” idea, where the rich and the poor diverge.

“There is a very clear disparity based on income in how people experience this,” Horowitz said.

The Pew survey reminds us of the non-uniform effects of a pandemic, like Friday’s work report. Some economists said,Recovery green sproutIf you look at the numbers through the lenses of race and gender, there is a more calm view.

According to the Institute for Women’s Policy, women have 5.1 million fewer jobs and men have 4.4 million fewer jobs than in February 2020.

“Millions of women in the affected industry are absent from work and need help to pay bills and return to paid work,” said C. Nicole, CEO of the Women’s Policy Institute. Mason says. “This month’s Jobs Day report shows that one in ten blacks and Hispanic women are employed compared to a year ago.”

For example, the unemployment rate for black women rose from 8.5% to 8.9% in February. This reflects that many black women worked in industries that were hit by childcare and hospitality.

Clear division based on income

Overall, 21% of Pew survey participants said their financial position had deteriorated since 2020, and 30% said they were in better shape. Almost half (49%) say they are basically the same as before.

More than half of the people who told the Pew Research Center that they left 2020 in the form of worse money say they will not fully recover until 2023.

Just over half (26%) of people who told Pew that they were feeling worse than before the pandemic said it would take three to five years to recover.

About 6% predict that it will take up to 10 years, and 12% say their money situation will never return to the state of early 2020.

Others see the rebound coming, like this: Analyst With Goldman Sachs
GS,
-0.58%

Gross domestic product growth this year is projected to be 6.6%, 2.5 points above the consensus. Other economists We believe it will take two years for a full economic recovery — and that is the fastest schedule for a personal financial recovery.

The study showed that low-income participants in the Pew study were much more likely to spend less, spend their rainy day savings, borrow money, and borrow from friends and family.

Is the United States returning to normal?Millions of Americans still hurt by COVID-19 say it will take years for their finances to recover

http://www.marketwatch.com/news/story.asp?guid=%7B21005575-02D4-D4B5-4572-D2E138C50894%7D&siteid=rss&rss=1 Is the United States returning to normal?Millions of Americans still hurt by COVID-19 say it will take years for their finances to recover

Back to top button