<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="As some states start re-opening their economies, their recovery will vary widely since their unemployment rates are vastly different, say one economist.” data-reactid=”16″>As some states start re-opening their economies, their recovery will vary widely since their unemployment rates are vastly different, say one economist.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="“One very important dimension that makes today very different from 2008 and 2009, is that the unemployment rate in some states has gone up much more than other states,” Torsten Sløk chief economist at Deutsche Bank Securities told Yahoo Finance.” data-reactid=”17″>“One very important dimension that makes today very different from 2008 and 2009, is that the unemployment rate in some states has gone up much more than other states,” Torsten Sløk chief economist at Deutsche Bank Securities told Yahoo Finance.

“You take Utah or South Dakota, the unemployment rate is only like 6,7, 8% but in other states like Michigan and Pennsylvania, the unemployment rate is 25, 30% so that means that there are huge, huge differences in the starting point for this recovery,” he added.

The states which never went into lockdown are expected to see their economies recover more quickly.

“Some states did go into a lockdown, and others didn’t. And those that didn’t now look better simply because they did not see such an increase in the unemployment rate as we’re seeing in other states,” said Slok.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="[Read More: Stock market news live updates: Stocks fall as concern over virus fallout mounts]” data-reactid=”21″>[Read More: Stock market news live updates: Stocks fall as concern over virus fallout mounts]

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="On Friday the April jobs report will show the expected impact of COVID-19 on U.S. unemployment. Economists surveyed by Bloomberg expect the U.S. to have lost 21.3 million jobs in April, sending the unemployment rate to an expected 16%.” data-reactid=”22″>On Friday the April jobs report will show the expected impact of COVID-19 on U.S. unemployment. Economists surveyed by Bloomberg expect the U.S. to have lost 21.3 million jobs in April, sending the unemployment rate to an expected 16%.

“Clearly with the unemployment rate, we went up the elevator, and we’re definitely going down the escalator. It’s going to take quite some time to get the unemployment rate down,” said Sløk, who expects an even higher unemployment rate.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="“If we do get 18% on Friday, which is what we expect, it will take quite some time before we get back to the 3% and 3.5 % that we had in February,” said Sløk. Things are slowing down in terms of the deterioration. But we have dug ourselves into a hard, deep hole that it will take some time to crawl out of.”” data-reactid=”24″>“If we do get 18% on Friday, which is what we expect, it will take quite some time before we get back to the 3% and 3.5 % that we had in February,” said Sløk. Things are slowing down in terms of the deterioration. But we have dug ourselves into a hard, deep hole that it will take some time to crawl out of.”

A sign is seen at the window of a closed J.Crew store near Rockefeller Plaza on May 4, 2020 in New York City. - US clothing retailer J. Crew filed to begin bankruptcy protection proceedings Monday, after reaching an agreement with major creditors on a $1.65 billion debt restructuring plan, the company said in a statement. The brand, whose clothes have been worn by former first lady Michelle Obama, said online sales operations, which account for more than half its revenues, will continue as normal. (Photo by Angela Weiss / AFP) (Photo by ANGELA WEISS/AFP via Getty Images)A sign is seen at the window of a closed J.Crew store near Rockefeller Plaza on May 4, 2020 in New York City. - US clothing retailer J. Crew filed to begin bankruptcy protection proceedings Monday, after reaching an agreement with major creditors on a $1.65 billion debt restructuring plan, the company said in a statement. The brand, whose clothes have been worn by former first lady Michelle Obama, said online sales operations, which account for more than half its revenues, will continue as normal. (Photo by Angela Weiss / AFP) (Photo by ANGELA WEISS/AFP via Getty Images)
A sign is seen at the window of a closed J.Crew store near Rockefeller Plaza on May 4, 2020 in New York City. – US clothing retailer J. Crew filed to begin bankruptcy protection proceedings Monday, after reaching an agreement with major creditors on a $1.65 billion debt restructuring plan, the company said in a statement. The brand, whose clothes have been worn by former first lady Michelle Obama, said online sales operations, which account for more than half its revenues, will continue as normal. (Photo by Angela Weiss / AFP) (Photo by ANGELA WEISS/AFP via Getty Images)

<h2 class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="Consumer spending ‘reluctancy in particular among older generations’” data-reactid=”36″>Consumer spending ‘reluctancy in particular among older generations’

Economists are paying attention to consumer spending especially among the older population.

“People that are more than 65 years old, they account for 20% of consumer spending,” said Sløk. “People that are more than 55 years old account for 40% of total consumer spending, and given the risk to the older generations, they have significant risks to consumer spending overall.”

Sløk says the pullback among older generations is seen not only in services like restaurants, cruise lines and air travel, but also in the purchase of durable goods.

“Not only will we see some health requirements about distancing in crowds, sporting events, concerts, airplanes, but you will also probably see reluctancy in particular among older generations,” he added.

<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="
Ines covers the U.S. stock market from the floor of the New York Exchange. Follow her on Twitter at&nbsp;@ines_ferre” data-reactid=”41″>
Ines covers the U.S. stock market from the floor of the New York Exchange. Follow her on Twitter at @ines_ferre

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<p class="canvas-atom canvas-text Mb(1.0em) Mb(0)–sm Mt(0.8em)–sm" type="text" content="For tutorials and information on investing and trading stocks, check out&nbsp;Cashay” data-reactid=”47″>For tutorials and information on investing and trading stocks, check out Cashay

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