In the wake of the Coronavirus pandemic, the world economy obviously suffered a large hit, including in the United States.
While the stock market has regained some of its losses, the American unemployment rate remains historically low. Any recovery from this situation largely depends on a potential vaccine for COVID-19 and/or improved treatment options.
So let’s try to analyze the economic outlook for the rest of 2020 into 2021. While certain business sectors, especially in the technology world, weren’t as affected by this downturn, what about the rest of the economy? Is a return to better times right around the corner?
Any 2020 Economic Rebound Depends on COVID-19
According to an analysis by Deloitte, an economic rebound happening by the end of the year largely depends on the pandemic. Even if a COVID-19 vaccine hits the market, manufacturing enough to treat the entire world is likely to take years. Ultimately, improving the treatment of the Coronavirus remains the greatest hope for an economic bounce in 2020.
Deloitte Hints at Another “Jobless Recovery”
Certain business sectors suffered the most during the initial wave of the pandemic, including restaurants, travel, and entertainment. However, Deloitte feels the recession has the potential to spread to other business sectors throughout the rest of the year.
As their study noted: “The size of this secondary impact, and the permanence, may dictate whether the recovery from this recession is fast or slow. And recent experience has not been positive: The past few recessions have involved slow or ‘jobless’ recoveries, and that could well be the case again.”
Consumer Trust Will Play a Big Role in Any Economic Recovery
Deloitte anticipates if consumers begin to regain their trust in government agencies and private businesses, there is a potential for a faster economic recovery. They predict a potential economic bounce in Q3 of this year, as pandemic-related restrictions are loosened. Of course, the persistent nature of COVID-19 might tamper down on those expectations, especially with the rise in new cases over the last few weeks.
Either way, they still think economic growth “will likely remain subdued for several quarters after the bottom in 2020 Q2 until the disease is controlled, the secondary impact is over, trust is regained, and the global economy begins to improve.” In the end, Deloitte predicts some permanent damage to the U.S. economy due to COVID-19, even in their most optimistic projections.
So What Does This Mean For Your Career?
In a poor economy, companies still need IT talent. So reach out to the experienced recruiters at The CERES Group. As one of the top technical staffing agencies in Boston, we can help you build a rewarding career. Connect with us soon!