After months of a shuttered economy and record high unemployment due to the coronavirus pandemic, a surprising May jobs report seemed to indicate that employers were recalling workers much quicker than economists predicted, perhaps signaling a turned corner in the nation's fight against the pandemic and its economic impact.
But, there are questions about the reliability of that report, and economist Jon Gruber told Boston Public Radio on Monday most projections leave the nation clawing its way out of the economic downturn from COVID-19 for the next decade.
A new Congressional Budget Office analysis indicates that the economy will still be feeling the effects of the coronavirus pandemic into 2030.
Gruber said unemployment insurance (UI) benefits and extensions currently provided by the government will eventully run out unless Congress acts to provide more stimulus.
"We cannot give up on fiscal stimulus. The next date to watch is July 31," he siad. "On July 31, the $600 benefits for UI run out, and basically the question is are we going to continue to give extra UI benefits? The regular UI benefits will extend to the end of the year, even that isn't long enough."
Gruber said the nation will still see an unemployment rate above 10 percent by the end of 2020.
He likened arguments against providing more financial assistance to those of people arguing that governments should start relaxing social distancing restrictions because the curve has been flattened.
"We made things better through our actions, but it doesn't mean the problem is solved," he said.
