Washington (AP) — Collision like a derailed train, very destructive, but short-lived.
The recession that accompanied the coronavirus pandemic lasted only two months and officially ended in April 2020. This is the shortest recession on record, according to the Economist Commission, which decides the start and end of the recession.
The National Bureau of Economic Research’s Business Cycle Date Committee said on Monday that the US economy peaked in February 2020. The recession began the following month and ended in April.
The NBER said the recession ended that month. That is when the economy reaches its lowest point in terms of employment and production. The end of the recession does not mean that the economy has fully recovered. According to the committee, it began to rebound in May 2020.
The recovery has been going well for the past year and is almost complete with a few steps. Analysts estimate that economic goods and services production may have reached pre-pandemic levels in the April-June quarter.
On July 29, the government will release the first estimate of the GDP (Gross Domestic Product) of the economy in the second quarter. This confirms whether the economy as a whole has reached pre-pandemic levels.
NBER’s Business Cycle Date Committee is made up of eight academic economists and is chaired by Robert Hall of Stanford University. Other members include Robert Gordon of Northwestern University and Valerie Ramey of the University of California, San Diego.
Production may have recovered completely, but the economy still has 6.8 million fewer jobs than before the pandemic. The unemployment rate remains high at 5.9%, compared to 3.5% before the recession, which was the lowest level in half a century.
The fact that production is likely to recover completely in the absence of work raises concerns that companies have come up with ways to produce goods and services with fewer people. Enterprises are increasing their investment in machinery, computers, and software, which may enable some tasks to be automated.
Still, employers are desperate to hire, and many of the job gaps could be closed in the coming months. Employers added 850,000 jobs in June, the highest in almost a year, and many economists predict that employment will remain at that level for the next few months.
Employers cut more than 22 million jobs in March and April last year. This is the significant reduction since World War II. However, employment resumed in May.
Previously, the shortest recession lasted for six months from January to June 1980.
According to the Economic Commission, the pandemic recession lasted two months, the shortest on record.
Source link According to the Economic Commission, the pandemic recession lasted two months, the shortest on record.