The pandemic recession is officially over.
In fact, it’s been over a year.
The· National Bureau of Economic ResearchA semi-official mediator of the US business cycle, said on Monday that the recession ended in April 2020, just two months later. This is the shortest reduction on record. By June 2020, the station Officially decided that the recession has begun, It was over for two months. (The shortest recession ever recorded in 1980 lasted six months.)
However, although the recession in 2020 was short, it was unusually serious. Employers cut 22 million jobs in March and April, with unemployment reaching 14.8%, the worst level since the Great Depression. Gross domestic product has decreased by more than 10%.
The end of the recession does not mean that the economy has recovered.USA has Nearly 7 million less jobs GDP is more likely to return to pre-pandemic levels than it was before the pandemic, but thousands of companies have failed and millions of individuals are still struggling to recover.
But for economists, a recession is not just a time of financial difficulty. They are periods of economic contraction, as measured by employment, income, production and other indicators. When growth resumes, the recession will end, no matter how deep the holes remain. For example, the recession associated with the 2008 financial crisis ended in June 2009, four months before unemployment peaked and years before many Americans began to experience a meaningful recovery.
The extraordinary nature of the economic collapse caused by a pandemic Challenge traditional concepts Of “recession”.National Bureau of Economic Research Define recession As “a significant decline in economic activity that has spread throughout the economy and lasted for more than a few months.” Literally, the recent recession failed its test — the recession lasted only a few weeks. However, the Bureau’s Business Cycle Date Committee has decided that reductions should still be considered.
The Commission said, “The Commission has unprecedented scale reductions in employment and production, and its wide range across the economy has recessed this episode, even though the recession was shorter than the previous recession. We conclude that we justified the designation as. ” statement.
Officially, the pandemic recession lasted only two months.
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