Although it may hurt us in the present moment, in order for us to experience constant and consistent job growth again, the economy is going to have to shut down again for the most part, or we may be stuck in this constant cycle of of jobs growth and loss.
Wednesday, August 5, 2020
America's jobs crisis could be about to get even worse
While the coronavirus cases continue to increase, the brief recovery of the american job market begins to flatten. Through June and July, about 6 million new jobs were predicted added, but the marks was missed entirely. Now, after the number of cases decreased briefly before taking a sharp rise again as more states began to open up their businesses and public spaces, and with federal funds for businesses (particularly the PPP) beginning to dry up, that job growth that we had briefly experienced has come to a near complete halt.
Interest Rates Are Low, but Loans Are Harder to Get
Because of the current economic crisis caused by the coronavirus pandemic, interest rates are now extremely low. This should mean that banks and lenders are handing out loans left and right, but that is not the case. Because of how the virus has spread, shutting down many parts of the country, forcing millions of people out of work, and leaving the remaining workers in a precarious situation, lenders have tightened their requirements for qualifying for loans, including requiring higher credit scores and more documentation. Despite having literal billions of dollars available to loan, lenders are holding onto this money even tighter now.
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