The Pain of Unemployment Will Be Deep, But Not for Long

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There are two crises happening in this country right now: a health crisis that has forced everyone into their homes and a financial crisis caused by our inability to move around as we would normally. Over twenty million people in the United States became instantly unemployed when it was determined that the only way to defeat this horrific virus was to shut down businesses across the nation. One minute a person was gainfully employed, a switch was turned, and then the room went dark on their livelihood.

The financial pain that so many families are facing right now is deep.

How deep will the pain cut?

Major institutions are forecasting unemployment rates last seen during the Great Depression. Here are a few projections:

• Goldman Sachs - 15%

• Merrill Lynch - 10.6%

• JP Morgan - 8.5%

• Wells Fargo - 7.3%

How long will the pain last?

As horrific as those numbers are, there is some positive news. The pain will be deep, but it won’t last as long as it did after previous crises. Taking the direst projection from Goldman Sachs, we can see that 15% unemployment quickly drops to 6-8% as we head into next year, continues to drop, and then goes back to about 4% in 2023.

When we compare that to the length of time it took to get back to work during both the Great Recession (9 years long) and the Great Depression (12 years long), we can see how the current timetable is much more favorable.

Bottom Line

It is devastating to think about how the financial heartache families are currently experiencing right now is adding to the uncertainty surrounding their health as well. Hopefully, we will soon have the virus contained and then we will, slowly and safely, return to work.

Please contact Tobie Andrews Real Estate Media for all of your residential and commercial photography needs. Photos, video, and drone. Let us help you! tobieandrewsre.com