The May jobs report was far better than expected and retail sales also roared back this month. The data indicates that things are improving as states are reopening and people are recovering from the initial shock of the lockdown and the public health crisis.
That not withstanding, millions of people remain unemployed. More than 20 million jobs vanished at the height of the lockdown and it will take time to rebuild the labor market. Meanwhile, the number of Covid-19 infections is rising in some states, putting the reopening in jeopardy.
(CNN Business, June 18)
That not withstanding, millions of people remain unemployed. More than 20 million jobs vanished at the height of the lockdown and it will take time to rebuild the labor market. Meanwhile, the number of Covid-19 infections is rising in some states, putting the reopening in jeopardy.
(CNN Business, June 18)
- The 17.7% MoM retail sales number in May is good news (though we’re still down 6.1% YoY).
- However, some people are getting an extra $600 in unemployment per week, which combined with stimulus checks are raising purchasing power for many households.
- The extra unemployment money will soon end and it has been another week of 1.5m, Americans filing for unemployment, with still over 20m collecting unemployment overall.
- We also have seen a rebound in the smartphone market due to these factors. We must now watch and see how new COVID-19 spikes will impact re-openings as well as how the economy will react to more limited unemployment benefits.
- This could again hurt prepaid and national retail the most if the economy starts shrinking again.