AgdaPkt 2020-10-26 Joint SA PFA - Laserfiche WebLink

Browse Search

8.A. - Page 29 of 104 U.S. unemployment rate expected not to return to pre -crisis levels until mid -2024 Labor Market Recovery Is Showing Signs Of Slowing Down 52% of jobs lost remains to be recouped 155 150 145 f140 135 130 -Total payroll employment 125 do P� 1 0 PQ Vol O° PQ Pj0 Om PQ Pj0 Om PQ Pj0 Om PQ VjR Note: Data as of August 2020. Sources: BLS and S&P Global Economics. "Jobs gains have slowed significantly since a May surge, and initial jobless claims remain historically high. The economy added back 1.37 million jobs in August, according to the Bureau of Labor Statistics (BLS) — but only have of those lost in March and April have been regained, and there are still 11.6 million fewer jobs than before the pandemic. Worryingly, this was likely the easier half of the jobs recovery. And with initial jobless claims currently at 860,000 and remaining stubbornly near the 1 million mark, the next half is going to take some time as we go through the "sticky" part of the unemployment pool (meaning long-term unemployed and permanent job losers).... "Workers who were unemployed for 'temporary' reasons are now at greater risk of losing their positions permanently, with some already falling into that bracket. The number of permanent job losers, in the BLS' term, jumped to 3.4 million in August (25% of total unemployed), around twice pre -crisis levels. Also, the number of people counted as unemployed for 15 weeks or longer increased to over 8 million in August, four times the number we saw last year."' State and Local Economies On June 29, 2020, California Governor Gavin Newsom signed a $202 billion state budget that closed a $54 billion deficit due to COVID-19 through a range of reductions, including $11 billion in "trigger cuts" that could be rescinded if the federal government were to provide additional assistance for the pandemic. The trigger cuts included $2.8 billion in state employee salaries, $970 million in cuts to public universities, and $6.6 billion that would have gone to California's schools. However, no such federal relief has materialized. The state budget was also balanced by drawing on nearly $9 billion in reserves from the state's Rainy Day Budget Stabilization Fund. The California Department of Finance is forecasting an $8.7 billion deficit next year after drawing down the remainder of the Budget Stabilization Account, and a $17.8 billion deficit in three years. $0 ($2,000) ($4,000) ($6,000) ($8,000) ($10,000) ($12,000) ($14,000) ($16,000) ($18,000) ($20,000) 1 S&P Global Ratings Economic Research: The U.S. Economy Reboots, With Obstacles Ahead; 24 Sep. 2020 BUDGET MESSAGE A8