Although joblessness has fallen below double digits, behind the scenes, the picture becomes increasingly complicated. Permanent job losses increased from 534,000 to 3.4 million.
Business owners need more stimulus
Goldman Sachs issued a July report echoing the seriousness of the situation and projects that only 16% of business owners will be able to maintain payroll if another relief package isn’t passed by Congress.
Furthermore, roughly two-thirds or 63% of small business owners claim that less than three-fourths of their pre-pandemic revenues have returned. The ongoing threat of increased layoffs and declining profits raises a critical question – will this be an ongoing problem going into 2021?
The answer remains unclear. It is also unknown whether Congress will be able to reach a deal on a relief package anytime soon. As of today, Republicans and Democrats have yet to agree on various aspects of the COVID-19 relief package.
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