While the Democrats continue waging a pointless war against the Trump administration, the US is starting to win again as stock markets bounce back from the COVID-19 dip. The US Labor Secretary shared a message of optimism to concerned investors despite nationwide unrest.
Just ahead of Friday’s anticipated jobs report, Labor Secretary Eugene Scalia said on Thursday that the US unemployment rate could fall below 10% by the end of 2020. Despite spiking unemployment in May and a predicted increase for June, the department head remains positive. Scalia expressed hope on Fox Business, saying, “I really do believe that as hard as this has been, for American workers and their families, it was always meant to be temporary.”
Scalia’s optimistic comments about the way forward for the US economy and national job prospects came after the stock market saw a slight dip on Thursday morning after having an extremely good week thus far. Markets rallied in a four-day June winning streak that hasn’t significantly slowed yet. The markets are seeing a promising rebound on the S&P 500 and Nasdaq as stocks regain nearly two-thirds of value lost to the economic hit they took from the pandemic.
The Labor Department Head continued to caution investors and deter them from losing hope due to the bad jobs report for last month. Scalia stated, “Tomorrow’s report will be a hard report, but remember, it will reflect where we were in the middle of May.” As you can imagine with vast reopening measures taking place across the states since then, “Things have changed a lot.” The Trump administration believes jobs will return very quickly as businesses continue to reopen.
Scalia reminded audiences that, prior to the coronavirus shutdowns across the country, “We had an extraordinarily strong economy” thanks to the Trump administration. Prior to the pandemic, which hit hardest in March, April, and May, the unemployment rate last February was at a near-historic low of 3.6%. Unemployment was at its lowest rate in 50 years, including all-time lows for minorities and women.
Trump has continually appeared strongly hopeful that the economy will get back on track in no time, stating there is a “pent up” demand to get going. Some analysts say that, because we had such a strong, fast-moving economy prior to the pandemic, there is no reason for them to believe it will not recover just as quickly.
They also do not predict a lasting recession. This is a unique situation in that our economy did not see signs of a slowdown prior to the immediate closure of our country. As a result, analysts paint a picture of our economy merely being on pause, but ready to go.
The jobs report coming out on Friday will be telling as to how investors are feeling about the future. Some warn that unemployment is expected to potentially be as high as 20%, which would be the worst since the Great Depression. While that is quite an alarming number, it’s not as concerning as it would be in normal times. Many businesses are ready to launch with jobs to fill, leaving the economy no choice but to rebound as consumer demand increases.
Stay tuned for a full analysis of the job report.