The June job report is expected out today. The speculation is that about 3 million jobs were added in June as America began to reopen the economy. However, the the unemployment rate is expected to remain higher than normal. And then, Covid-19 struck again.
Many states started to reopen their economies by ending stay-at-home orders and reducing rules about business activities due to Covid-19. This led to an economic surge in June.
But the rise of Coronavirus infections have forced local governments to issue new orders closing businesses like bars and reimposed pandemic rules to limit the exposure of the virus. This has led to businesses again being forced to shutter.
In addition to the lost revenues from missing out on July Fourth celebrations some business owners, like bars, are looking at additional losses on products they purchased in anticipation of reopening.
But the rising infection rates across the country has added to the fear many are facing. Fear stalls the economy and shutting down the economy again will make it difficult for consumers to begin spending again when the economy reopens.
In addition to the new closure orders and the rising fear among consumers, the ending of unemployment benefits set to end in the coming weeks will add additional pressures to the economy. Also, some jurisdictions are lifting temporary eviction bans which may lead to families facing homelessness as they try to get back to work.
How many businesses will survive the 2020 economic chaos remains an open question. Bankruptcies are on the rise as well business closures.
The June numbers may look good, but the re-closing of the American economy means that the economic uptick will likely end in July. How bad will it get will depend on how soon American can reopen again.