Coronavirus Job Losses Could Total 47 Million. But Economy Could Bounce Back Quickly, Fed Says.
A record 3.3 million Americans filed initial jobless claims for the week that ended March 21 and many economists expect another 2.65 million to join them this week.
In fact, analysts at the Fed’s St. Louis district project total employment reductions of 47 million, which would translate to a 32.1% unemployment rate, according to a recent study looking at how bad things could get as the COVID-19 crisis continues.The one potential bright side is the likelihood that the downturn could be comparatively brief.
During a CNBC interview last week, St. Luis Fed President James Bullard said the jobless number “will be unparalleled, but don’t get discouraged. This is a special quarter, and once the virus goes away and if we play our cards right and keep everything intact, then everyone will go back to work and everything will be fine.”
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