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

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Real Estate Agent with Samson Properties 0225203569

 

 

The Pain of Unemployment: It Will Be Deep, But Not for Long | MyKCM

There are two crises 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 normally would. Over 20 million people in the U.S. 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 second a person was gainfully employed, a switch was turned, and then the room went dark on their livelihood.

The financial pain 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 good 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 returns 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.The Pain of Unemployment: It Will Be Deep, But Not for Long | MyKCM

Bottom Line

It’s devastating to think about how the financial heartache families are going through 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.

 

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Rainmaker
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Joan Cox
House to Home, Inc. - Denver Real Estate - 720-231-6373 - Denver, CO
Denver Real Estate - Selling One Home at a Time

Patricia, it is tough when we get calls from our past clients worried about being able to pay their mortgage.

Apr 20, 2020 04:32 PM #1
Rainer
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Patricia Joy Schenk, M.Ed.
Samson Properties - Vienna, VA
Right Home, Right Price, Right Realtor

I know. And my understanding is that mortgage relief has to be repaid. 

Apr 21, 2020 06:46 AM #2
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Rainer
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Patricia Joy Schenk, M.Ed.

Right Home, Right Price, Right Realtor
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