When the economy may begin to rebound
Posted April 9, 2020 4:45 p.m. EDT
Updated April 9, 2020 8:57 p.m. EDT
Raleigh, N.C. — The unemployment rate reached 13% on Thursday, which marks the country's lowest point since the Great Depression.
Economists are now comfortable calling this downturn a recession.
"This recession, despite the unprecedented help the government is giving and that includes the Federal Reserve, it's still going to damage business," said Mike Walden, NC State economist.
The damage is already taking place as businesses around the country and in North Carolina have been forced to close their doors under stay at home orders. Many of the businesses can't afford to keep employees on the payroll and may struggles to reopen once the threat of the Coronavirus is gone.
When we can start digging out of the recession depends a lot on the coronavirus and the spread, but economists believe the first signs will come in the fall and into the winter.
"I don't think this is going to be a sharp rebound," Walden said. "I think it will be a noticeable rebound, but it may be up to a year or more before we get the economy back to where it was, for example, that 3.5% unemployment rate."
And since this situation is caused by something as unpredictable as a virus, our rebound could be just as unpredictable.
"There's a psychological impact here. I think people will come out of this still afraid," Walden said.
The positive news for North Carolina is that this still remains a place people want to live.
"We are keeping an eye on the pipeline in general, so even through all of this we are still being contacted by business here in the state that are considering an expansion or businesses that are coming in to North Carolina," said John Loyack, Economic Partnership of North Carolina Vice President.
Companies that will eventually bring much needed jobs and maybe a little hope.