“Many analysts believe unemployment could be greater than 20%.”
Tomorrow morning the Bureau of Labor Statistics will release the latest Employment Situation Summary, which will include the most current unemployment rate. It will be a horrific number. Many analysts believe unemployment could be greater than 20%. These numbers represent families across the nation that are not sure when (or if) they will return to work. The emotional impact on these households is devastating.
There are, however, some small rays of light shining through on this issue. Here are three:
1. The actual number of unemployed is less than many are reporting
The number of people unemployed is sometimes over-exaggerated. It seems that every newscaster talks about the 40+ million people “currently” unemployed. It is true that, over the last ten weeks, over 40.7 million people have applied for unemployment. It is also true, however, that many of those people have already returned to work or gotten a new job. The actual number of people currently unemployed is 21.1 million. This is still a horrible number, but about half of what is often being reported.
2. Of those still unemployed, most are temporary layoffs
Last month’s unemployment report showed that 90% of those unemployed believe their status is temporary. Friday’s report will probably show a decline in that percentage as the original number was somewhat optimistic. However, a recent survey by the Federal Reserve Bank showed that employers believe over 75% of job losses are temporary layoffs and furloughs. This means 3 out of 4 people should be returning to work as the economy continues to recover.
3. Those on unemployment are receiving assistance
According to a recent study from the Becker Friedman Institute for Economics at the University of Chicago, 68% of those who are eligible for unemployment insurance receive benefits that exceed lost earnings, with 20% receiving benefits at least twice as large as their lost earnings.
Bottom Line
Tomorrow’s report will be difficult to digest. However, as the nation continues to reopen, many of those families who are impacted will be able to return to work.
To view original article, visit Keeping Current Matters.
Thinking About Using Your 401(k) To Buy a Home?
Before you decide to dip into your retirement to buy a home, be sure to consider all possible alternatives and talk with a financial expert.
Homeowner Net Worth Has Skyrocketed
Buying a home can be a great way to grow your net worth, since home values have a tendency to rise over time, meaning you have more equity.
Reasons To Sell Your House Before the New Year
Selling now, while other homeowners may hold off until after the holidays, can help you get a leg up on your competition.
Don’t Believe Everything You Read About Home Prices
If you believe home prices are falling, it may be time to get your insights from the experts, and they’re saying prices are climbing.
Foreclosures and Bankruptcies Won’t Crash the Housing Market
Foreclosure filings are inching back up to pre-pandemic numbers, BUT they’re still way lower than when the housing market crashed in 2008.
Affordable Homeownership Strategies for Gen Z
One of your best resources on the journey as a young homebuyer is a trusted real estate agent.