U.S. economy gets worse before it starts to recover

USA, unemployment, labor market

The condition of the US economy will deteriorate even more temporarily before it starts to improve. This is apparent from a survey carried out on a representative sample of United States households. They expect their labor market position to deteriorate for some time to come.

Meanwhile, current statistics from the US labor market show that 250,000 jobs have been created in the past month. However, the vast majority of them were created in sectors that deal with parcel delivery or the sale of goods over the Internet. This has to do with the tightening of anti-epidemic measures in the US as the development of the coronavirus epidemic continues to worsen.

But the relevant data are only available late, so they map out the situation that took place in the labor market a few weeks ago. By contrast, a survey conducted among American households shows that the labor market will continue to show a deterioration in job-search opportunities for some time to come. Experience of past economic crises suggests that the findings of these surveys were subsequently confirmed by hard data. Experts suspect that some deterioration must be expected before the US economy bounces back strongly.

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