Even with the fastest recession in US history," isn't going to be quick or easy. The US economy shattered records when it plunged 32.9% in the second quarter, according to data released by the Commerce Department (PDF) this week.and a on the horizon, bouncing back from the recession, deemed the
Among the factors contributing to the problem is the haphazardly reopen after lockdown. State governments across the country then pressed pause on their plans to reopen and many even reversed course, temporarily shuttering businesses like restaurants and bars mere weeks after they opened back up.that erupted when states began to
If you find yourself among the millions of Americans who've experienced economic hardship as a result of the coronavirus pandemic, many of the economic safeguards put into place at the start of the lockdown have either, making matters exponentially worse. A renewal of and are chief among the issues being debated in a second stimulus payment.
So, what does the road to economic recovery look like from here? We've put together the latest news about the coronavirus recession, where to find help, what makes a recession and the government's response. Note that this story is intended to provide an overview, not to serve as financial advice. It updates frequently as the situation develops.
Latest coronavirus recession news
- Over 1.4 million US workers (PDF) filed for unemployment benefits last week, according to the Labor Department, marking the 19th straight week with over 1 million unemployment applications. Prior to the coronavirus, the record was nearly 700,000 claims in 1982, the New York Times reported.
- According to the US Bureau of Labor Statistics, the unemployment rate, which had surged to 14.7% in April, fell to 11.1% in June (PDF), which is still higher than in any year since 1940.
- The Commerce Department's latest numbers (PDF) confirm two consecutive quarters of economic contraction -- the definition of "recession" used by most economists.
- According to the World Bank, humanity has experienced 14 global recessions since 1870, the last being the financial crisis of 2007 to 2009. The organization projects that this one will be the worst since World War II.
Where to find personal financial resources to help you prepare
If you've experienced financial hardship as a result of the coronavirus recession, here are some tools to help you regain your financial balance.
- If you're unemployed and need to apply for benefits, here's everything you need to know about
- For help navigating the various rent relief measures that might affect you, here's our
- If you've fallen behind on your car payment (or might soon), here's what you need to know about
- Are you worried about your investment portfolio or savings?
during the pandemic.
in this volatile market.
if you're worried about market ups and downs.
- There might be another stimulus check coming.
When will the recession end?
Unfortunately, we don't have answers to that question. From an economist's point of view, a recession ends when certain market requirements are met. From a personal point of view, you might wonder most about your ability to work, pay your bills and secure your financial future.
Economists and experts agree that the economy won't recover until the coronavirus pandemic is contained -- without when lockdown measures are released. That'll happen either through , an effective treatment for , a or some combination of all three.
Several vaccine candidates have shown promise in human trials. Even so, it may still be another year or longer before anything is approved for widespread use. The development of a coronavirus vaccine is fast-paced and details change daily.
How the government has tried to bolster the economy
The a loan program for businesses to keep paying their employees.passed as part of the CARES Act in March represents the US government's first attempt at thwarting a recession. The economic relief law included for most US taxpayers, as well as
A debate over a hold interest rates close to 0% for the foreseeable future, which often has the effect of encouraging more borrowing, which leads to more spending -- and more spending generally improves the economy.is currently working its way through Congress, but still appears weeks away from being finalized. Meanwhile, the Federal Reserve has indicated it will continue to
How can I help?
It's easy to feel helpless, but if you're feeling financially secure or have time to give, there are ways to make a difference. My CNET colleague Katie Conner has some excellent recommendations for, including no-cost contributions like online volunteering or donating blood, as well as ordering take-out or delivery, and buying restaurant gift cards.
Other local businesses like bookstores, gardening centers, toy shops and boutiques may have a website where you can support them with a curbside order, if they remain closed.
The best advice I've heard so far about how you can individually help prop up the economy is this: Spend to the best of your ability and within your means.