A NEW ECONOMIC ANALYSIS from the Congressional Budget Office paints a grim picture of what’s in store for the domestic economy this year and next – throwing cold water on the notion that the U.S. will quickly recover from its coronavirus-fueled recession.
In a series of projections published on Friday, the CBO estimates the national unemployment rate will hit 14% in the second quarter of the year and 16% in the third quarter. Unemployment will average 11.4% this year, and by the end of 2021, the CBO thinks the rate will still sit at 9.5% – nearly three times pre-coronavirus outbreak levels.
During the depths of the Great Recession, unemployment peaked at 10% and was only that high for one month. The average unemployment rate this year and next is expected to exceed that level.
“The increase in that rate in the second and third quarters reflects the net effect of a projected loss of nearly 27 million in the number of people employed and the exit of roughly 8 million people from the labor force,” according to the report.
That assessment stands in stark contrast to the rosier picture painted by President Donald Trump and members of his administration, who are still holding out hope that an economic reopening will return the country to its former glory. – READ MORE
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