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STIMULUS UPDATE: June 2020 Jobs Report, How Does This Impact the Next Stimulus?

The US economy added 4.8 million jobs in June after adding 2.5 million in May, and that the unemployment rate declined to 11.1%.  Which by no stretch of the imagination is still high.  I wouldn’t really consider adding 4.8 million jobs to the workforce a victory when nearly 40 million people lost their jobs. That’s still nearly 35 million people still out of work

The odds of the second round of stimulus checks may decline. However, they won’t disappear entirely. Lawmakers seem to agree that a phase four stimulus package is needed, so they may still include a second round of checks in the package.

The problem with putting too much weight on the June jobs report is that the Paycheck Protection Program is still securing many people’s jobs.  The Paycheck Protection Program is a federal loan program that was established in the CARES Act.  The Senate passed An emergency stimulus Yesterday to extend the SBA PPP Loan until August 8th! 

Senate Majority Leader Mitch McConnell told reporters that another stimulus could come soon. He said the Senate will discuss the next relief package when it returns from its two-week recess on July 20.  He implied that they would try to work swiftly to get something accomplished before the August 10th recess where they will not return until after Labor Day.

The June jobs report suggests that due to the impact of the pandemic and efforts to contain it, the economy is still in poor shape despite some improvement in the job numbers.  The first stimulus package was a lifeline for millions of Americans.  Unlike when the first bill was passed in March, Congress is divided on whether people need another stimulus.