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- Bleak unemployment data and forward-looking projections suggest the US economy is doomed for a prolonged recession.
- Some forecasts for unemployment have exceeded what was seen during the peak of the Great Depression. But some experts still see a path to a V-shaped rebound.
- Demand can still bounce back in the virus's wake, according to Heidi Shierholz, director of policy at the Economic Policy Institute, said.
- But the outlook isn't all rosy. The labor market's historic declines "suggest that productive capacity is being eroded," Seema Shah, chief strategist at Principal Global Investors, said.
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Dire unemployment forecasts are sending a shock through the already-pummeled economy and garnering comparisons to the Great Depression. But experts are still holding out hope for a sharp, V-shaped rebound.
A New York Times column published Friday pegged the current unemployment rate at 13%, roughly 9 percentage points greater than its latest reading. Meanwhile, Johns Hopkins University's Center for Financial Economics said Thursday that the rate could soar to 20% over the next six months as layoffs continue and plunge the country into labor-market turmoil not seen since the 1930s.
See the rest of the story at Business Insider
See Also:
- Nobel-winning economist Paul Krugman sees unemployment soaring to 20% in a matter of weeks
- America's historic unemployment numbers show the pre-coronavirus economy was more vulnerable than anyone thought
- 'The deepest recession on record': Bank of America slashes forecasts, now sees up to 20 million jobs lost, 15.6% unemployment, and a shrinking economy for 3 straight quarters
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