Newsroom
March jobs report reflects coronavirus impacts; NAFCU expects a bumpy recovery
With 701,000 jobs lost in March, NAFCU Chief Economist and Vice President of Research Curt Long said that, as forecasts worsen, "credit unions should be prepared for a bumpy and tepid recovery." Additionally, the unemployment rate rose to 4.4 percent – the largest month-over-month increase in the rate since January 1975.
“The March jobs report captured more job losses than was expected, but it is still nowhere close to the present level of unemployment,” noted Long in a new NAFCU Macro Data Flash report. “The timing of the survey – second week of March – puts these numbers at the very beginning of the country's shutdowns, obscuring the full picture of job losses.
“It was not until the middle of the month that states began ordering restaurants to close. Even still, losses in the restaurant industry accounted for two-thirds of total losses. Broader business closures in the second half of March and beginning of April will be reflected in the next release,” suggested Long.
Other insights from the report indicate negative results among the major industries. The leisure and hospitality sector shed 459,000 jobs, followed by the health care and social assistance sector losing 61,000 jobs. The professional business services sector and the retail sector lost 52,000 and 46,000 jobs respectively.
Average hourly earnings rose by eleven cents to $28.62 over the time period, while year-over-year wage growth rose 3.1 percent.
“NAFCU has consistently warned that hiring may be slow to return even after the worst of the health crisis is over, and a recent forecast from the Congressional Budget Office shows an unemployment rate of 9 percent at the end of 2021," Long concluded. “While this seems high today, with each passing day the forecasts worsen. The uncertainty of the health crisis means we do not know how long businesses will stay shuttered and, when those measures are relaxed, whether the virus will remain contained.”
Share This
Related Resources
Add to Calendar 2024-03-26 09:00:00 2024-03-26 09:00:00 Ensuring Safety and Soundness with AI Listen On: Key Takeaways: [03:48] The regulators are very focused on fairness in lending especially when it comes to using AI and outside models. The industry is moving very fast. [08:25] Articulating a business use case and how partnering with a Fintech can support it is the first step in having a successful conversation with your board. [10:30] Talk to your account executive at your Fintech and have them help you overcome objections. [15:01] Plan for oversight. It is not set and forget it. Your regulators are going to want to know how you are overseeing that from a 3rd party risk management standpoint. [15:47] Have a handle on your reserves and capacity for lending and start small and grow slowly. Web NAFCU digital@nafcu.org America/New_York public
Ensuring Safety and Soundness with AI
preferred partner
Upstart
Podcast
Help Ease Your Members' Loan Payment Concerns
Planning, Auto Loans, Research
preferred partner
TruStage
Blog Post
The Value of Risk Management in Cybersecurity
preferred partner
DefenseStorm
Video
Add to Calendar 2024-03-13 14:00:00 2024-03-13 14:00:00 Digital Assets in Credit Unions: What Are the AML Risks? The digital asset boom is upon us. Like it or not, you have to deal with it effectively with your members, credit unions are on the frontlines of crypto adoption. Even the NCUA has been providing more and more guidance on different aspects of digital assets. You need to be prepared. How? By understanding the core basics of digital assets (specifically cryptocurrencies) the risks that it poses to credit unions and how you can be better prepared to handle issues when they arise. In this webinar, Understanding the Digital Assets Boom, you’ll focus on the basics of digital assets, a background of cryptocurrencies and types, the regulations that are established and the proposals that are being considered and how to position yourself to understand all of these components and include them in your day-to-day roles. Key Takeaways Comprehend the basics of digital assets including cryptocurrencies Understand currently established regulations and what the future has in store, specifically in 2024 Identify and remediate issues that arise in your credit union Register Now $295 Members | $395 Nonmembers(Additional $50 for USB)One registration gives your entire team access to the live webinar and on-demand recording until March 13, 2025Go to the Online Training Center to access the webinar after purchase » Who Should Attend NCCOs NCRMs Compliance and risk titles Education Credits NCCOs will receive 1.0 CEUs for participating in this webinar NCRMs will recieve 1.0 CEUs for participating in this webinar Web NAFCU digital@nafcu.org America/New_York public
Digital Assets in Credit Unions: What Are the AML Risks?
Credits: NCCO, NCRM
Webinar
Get daily updates.
Subscribe to NAFCU today.