Is The US Headed For A Depression? Americans Concerned About Economy For The Next 5 Years

Nearly two-thirds of Americans say they expect widespread unemployment or an economic depression in the next five years, an online poll indicated Wednesday, complicating the economic recovery from the coronavirus pandemic.

A New York Times/SurveyMonkey poll indicated just 37% expect good economic times in the next five years, with 30% of people saying they are worse off now than they were a year ago and 25% saying they are better off. Sixty percent said they expect “periods of widespread unemployment or depression in the next five years.”

President Trump has said he expects a V-shaped recovery once coronavirus restrictions are lifted but most economist say that is unlikely, with unemployment hovering around 9% through the end of next year and hundreds of thousands of small businesses closing for good.

The Labor Department pegged the April unemployment rate at 14.7% and that percentage is expected to grow this month. Americans have filed 36.5 million initial unemployment claims since mid-March, when coronavirus layoffs began as nonessential businesses were ordered to shut down, and the economy is expected to register a nearly 40% contraction in the second quarter.

Fifty-six percent of those queried said they doubt they’ll be able to find a new job in the next month. An analysis by data insights firm TOP Data, however, indicates the number of jobs available nationally grew by 3.65% between Friday and Monday.

The SurveyMonkey poll indicated 68% of those polled are worried returning to work would pose a threat to their health. Of those still working, 45% said they are worried performing their usual tasks pose health risks.

Thirty-nine percent said their top concern is jobs and the economy, with men more worried (45%) than women (34%), followed by concern over health (27%). Concerns over foreign policy and terrorism were topmost among only 1% of those polled.

Fifty-three percent of those polled said the pandemic was more of a health crisis while 45% characterized it as more of an economic crisis to the nation as a whole. When brought down to the personal level, 47% said it was more of an economic crisis and 51% said it was more of a health crisis.

Half of the 5,733 people polled May 4-10 said they were employed full time, while 12% said they worked part time – 50% working from home -- and 17% were retired. Just 10% said they were looking for jobs.

Thirty-eight percent of those working said their hours had been cut while 35% said they were very worried about losing their jobs in coming weeks because of COVID-19. Just 23% of those out of work said they had been able to apply successfully for unemployment benefits in the past month.