June job reports released on Thursday morning show that the U.S. economy added a total of 4.8 million jobs in June, which was well above estimates, according to Forbes. The numbers also revealed a drop in unemployment to 11.1 percent.
As Heavy previously reported, the prospect of a second stimulus check is largely dependent on these numbers, but in the words of Forbes, you should not expect the unemployment data to be the sole indicator of a second payment. Forbes writes that even though the unemployment and jobs numbers are promising, “declaring a victory would be premature.”
Coronavirus outbreaks are increasing across the country, and in many ways, the June data is outdated, especially considering the fact that the reports rely on surveys conducted in mid-June.
June Job Reports May Be Misleading
As of July 2, according to Heavy, confirmed cases of COVID-19 reached more than 10.7 million around the world, with 2.7 million cases in the U.S. and over 130,000 deaths.
Speaking to The Hill, Elise Gould, senior economist at the progressive Economic Policy Institute, stated, “Given the likelihood that states may have to re-shutter parts of their economies with the rise in cases, the job gains we saw last month may not last… The losses this spring were mammoth and given recent trends on the health front plus the upcoming fiscal cliff, the economic pain will certainly be long lasting,” he added.
Mark Zandi, chief economist at Moody’s Analytics, echoed those sentiments, warning that the June data is not a reflection of the rise in coronavirus cases. The Hill quotes Zandi as highlighting how the surge in cases, specifically across the South and Sun Belt, happened mostly after job report surveys were taken during the week of June 12.
“This is a real threat to the nascent recovery,” Zandi said. “A healthy population is a necessary condition for a strong economy.”
White House Officials Say Another Stimulus Check Is “Still on the Table”
Despite the rising coronavirus numbers, the White House is saying that a second coronavirus check is still possible.
White House economic adviser Larry Kudlow told FOX Business on Thursday morning, “It’s a large-scale package… Direct checks are probably going to be part of it, as far as the president is concerned right now.”
Treasury Secretary Steven Mnuchin also stated that the White House administration will “seriously consider” another round of payments, according to FOX Business.
Over the past few days, President Donald Trump has reiterated his support for a second stimulus check. “I support actually larger numbers than the Democrats, but it’s got to be done properly,” Trump said on Wednesday during an interview with FOX Business. “I want the money getting to people to be larger so they can spend it. I want the money to get there quickly and in a non-complicated fashion.”
At this point, a second round of checks is part of a stimulus package known as the HEROES Act, which would provide payments of $1,200 per adult and $1,200 per dependent for a maximum of three dependents, according to Forbes. In addition, the HEROES Act provides protection and assistance for homeowners and renters, an extension on suspended debt payments, and increased pay for essential workers.