"US Unemployment Worsening Not at Peak" Concerns Over Delayed V-Shaped Economic Recovery

Despite Serious Damage, Main City Remains Negative Despite Rapid Support

[Asia Economy New York=Correspondent Baek Jong-min] White House and U.S. government officials have repeatedly issued warnings about the spread of the U.S. unemployment crisis. Although the unemployment rate surged from 3.5% to 14.7%, there are concerns that the worst has not yet been seen. There is also a noticeable shift in the government's perspective, which had hoped for a V-shaped economic recovery after the resumption of economic activities.

On the 10th (local time), key U.S. government officials who appeared in broadcast interviews unanimously gave a negative outlook for the future.

Steven Mnuchin, the Treasury Secretary, said in an interview with Fox News that "the unemployment rate in April rose to 14.7%, and job indicators will worsen further." He predicted that the economy in the second quarter will deteriorate significantly, stating, "(Job indicators) will only rebound after falling further."

Larry Kudlow, Chairman of the White House National Economic Council (NEC), also said in an interview with ABC that "the April job numbers are bad," adding, "I don't want to sugarcoat it." He mentioned that "the May figures will also be very bad."

Kevin Hassett, Senior Economic Advisor to the White House, appeared on CBS and said, "Jobs will hit the bottom in May or June," and predicted that the unemployment rate could temporarily exceed 20%. When asked about the timing of the resumption of economic activities, he cautiously responded, "I am an economist, not a health official."

The fact that Trump administration officials are promoting the theory of delayed economic recovery despite many states preparing to resume economic activities is interpreted as an acknowledgment that additional economic and unemployment deterioration is inevitable for the time being.

However, Secretary Mnuchin said, "It will improve in the third quarter, and get better in the fourth quarter," adding, "Next year will be a great year." He emphasized that the current economic situation is due to the virus and stressed the necessity of resuming economic activities.

Chairman Kudlow also interpreted, "About 80% of the unemployed are on unpaid leave or temporary layoffs. While this does not guarantee a return to work, it strongly suggests that the ties connecting companies and the unemployed remain intact," and predicted, "Next year, the U.S. economy will rebound tremendously."

Although the economic situation is worsening, additional stimulus measures are facing confusion amid political strife. The Democratic Party is pushing for additional economic support bills, including aid for heavily affected state governments, but the White House has declared a temporary halt to negotiations.

Secretary Mnuchin stated, "We have poured in a lot of money, but this money has not yet flowed into the economy," and added, "We need to be cautious before injecting trillions of taxpayer dollars."

The National Governors Association is requesting $500 billion in aid from the federal government, but the Trump administration appears reluctant to provide swift support, as most governors of severely affected states are Democrats.

This content was produced with the assistance of AI translation services.