US Unemployment to Soar to 11.5% Due to Small Business Layoffs, UNC Says

US Unemployment to Soar to 11.5% Due to Small Business Layoffs, UNC Says

US Unemployment to Soar to 11.5% Due to Small Business Layoffs, UNC Says

WRAL TechWire, March 30, 2020

Passage of $2 trillion in federal stimulus will help support the country’s economy while the COVID-19 pandemic runs its tragic course. Will it be enough? Time will tell. Christian Lundblad, Research Director at the Kenan Institute in Chapel Hill, calls it “an important start,” but suggests more will likely be needed. “In some sense, the first spike is here already – the initial jobless claims figure was an early testament to this,” he says. “Other official statistics will be significantly lagging.” Lundblad believes the next 30 to 90 days will be critical for the survival of small businesses struggling to cope without revenues or cash reserves and hungry for fresh capital. Surveys of small businesses by the Kenan Institute project the nation’s unemployment rate is likely to quadruple to 11.5 percent. Federal Reserve estimates are even more dire, anticipating as much as a 32 percent jobless rate.

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