June 8, 2020 / Zack Friedman, Contributor
Will there be more stimulus?
Here’s what you need to know.
Watch The Unemployment Rate
Could the unemployment rate influence the next stimulus bill? Possibly. First, the Senate is in no rush to pass a stimulus package. Senators likely won’t vote on a new stimulus bill until July. Second, the May jobs report won’t increase the odds of a large stimulus bill.Why? May’s unemployment rate was expected to increase, but it ended up lower than April’s 19.7% unemployment rate. Surprisingly, the economy added 2.5 million jobs and the unemployment rate dropped to 13.3% (or 16.3% due to a disclosed error).
If the unemployment rate unexpectedly dropped, that may signal to at least some senators that the economy is improving and more people are getting hired. For these senators, this would decrease the urgency to pass a large spending bill. Opponents argue that it’s preliminary to conclude that the economy is recovering from one jobs report. Opponents argue that the economy is not recovering from the COVID-19 pandemic and that more stimulus is desperately needed to help those in financial need.