“The unemployment rate shot up from under 4% pre-pandemic to over 14% now. The joblessness rate is certain to be higher next month, but soon afterward it will steadily fall. How fast and for how long will be determined by the containment of the virus.
Consider that the jobless rate shot up from 5% to 15% in New Orleans following Hurricane Katrina. However, it soon fell to 5% within a few months of reopening the city and from massive disaster relief funding. Though not comparable because flood is different from fear, the current massive pandemic relief is providing support to lost income. Savings have doubled during the pandemic and could turn into spending very soon.”