The COVID-19 pandemic has had widespread effects on the U.S. economy. While May brought signs of job recovery, the U.S. is officially in a recession, and the long-term economic effects of COVID-19 are still unclear.
Here are five things to know about COVID-19 and the economy as of June 10:
1. Economic activity peaked in February 2020, marking the end of an expansion that began in June 2009, according to a report from the Business Cycle Dating Committee of the National Bureau of Economic Research. The recession brought an end to the longest economic expansion in the history of U.S. business cycles.
2. Overall, Americans filed more than 40 million unemployment claims in the 10 weeks before May 28, according to data from the U.S. Labor Department. Additionally, U.S. job openings hit a record low in April while turnovers decreased to 9.9 million, according to the latest Job Openings and Labor Turnover Survey from the U.S. Bureau of Labor Statistics.
3. The Congressional Budget Office predicts that financial fallout from the COVID-19 pandemic will slim the U.S. economy by about $8 trillion over the next decade. The projections were outlined in a June 1 letter to Senate leaders. CBO said the U.S. economy will see $7.9 trillion less growth from 2020-30 than was projected in January. The Washington Post said that decrease represents a 3 percent decline in gross domestic product compared to previous estimates.
4. Job losses related to the COVID-19 pandemic are disproportionately affecting women. The investment banking company Citi examined U.S. unemployment claims data filed in March and April. During this time period, 11.7 million women filed claims, compared to 9.6 million men.
5. The corporate impulse to reduce salaries, especially at senior levels, to avoid layoffs is more widespread compared to the last recession.