CEN Advisory: COVID Economic "Reality Check"

 

CEN Founder and President Mary Marr sat down with CEN National Finance Officer, former President of the fourth largest import export company in the U.S., for a perspective on questions being raised by network partners concerning the state of our domestic economy given the COVID pandemic challenges. He shared some key facts and open source news reports as helpful evidence. 

Unemployment

The Federal Reserve documented 152 million Americans were working before the pandemic. Currently only 142 million  are working now, according to Federal Reserve Bank statistics.

The Bureau of Labor Statistics reports an official unemployment rate of 6.3%, while other sources such as Axios report the true unemployment rate is closer to 26%.

 Small Business

The Federal Reserve reported 9 million small businesses, or 30% of the 30 million in the United States are likely to fail without significant additional assistance. 88% of businesses report sales have not yet returned to pre-pandemic levels. Strikingly, 77% of black owned firms said their condition was fair or poor while 66% of Hispanic businesses said their condition was fair or poor. Small business accounts for 48% of total jobs in the United States. These statistics dramatically affect U.S. unemployment rates.

The Looming Eviction Crisis

CNN reports 10 million renters are behind on their rent and face eviction. Further, an estimated 16 million renters had little confidence they could pay the rent due this month. With federal moratoriums on evictions for non-rent payment; homeowners without work being severely squeezed because of mortgage payments; and when utilities and maintenance must still be maintained even if no rent is paid, what are those facing eviction to do? 

Other Statistics

 

Bloomberg reports 8 million more Americans are now living in poverty. 

Airport traffic  is still down 60% from pre-pandemic levels.  

Restaurants, the largest single employer in the United States, have seen a reduction of seated diners decline to 66% . 

Retail sales continue to increase for online stores, while continuing decreases are faced by brick-and-mortar establishments. Green Street Reports half of department stores and malls are likely to close by the end of 2021. 

Events are moving very rapidly as any business operator understands. When faced with uncertain times we need to follow the words of James, “If any of you lacks wisdom, you should ask God, who gives generously to all without finding fault, and it will be given to you.” (James 1:5) 

 

ReadyChristian ACTIONS to prayerfully consider given the current situation:

• Be careful with your budget and spending, we never know when our job is at risk.

• Look for opportunities to share resources and demonstrate the love of Christ to those around you, as you are able.

• Patronize local businesses when you are able to assist them and surviving the current crunch

• Ask the Lord for guidance every day because we do not know the future.

• Share the Hope of Christ as this is your true eternal treasure laid up in heaven for you!