Economics

Sharp, Short U.S. Recession Giving Way to Longer-Term Scarring

  • July jobs report showed increase in duration of unemployment
  • Recovery prospects dim even with Trump orders for relief

Reports due later this week on July retail sales, industrial production and consumer sentiment are expected to confirm a moderating pace of economic activity.

Photographer: Christopher Dilts/Bloomberg
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The pandemic-induced downturn initially had hints of being the sharpest but shortest U.S. recession on record. Now there are increasing signs of economic scarring that resemble past slumps.

Beneath a headline number showing a better-than-expected gain in July jobs, the government’s employment report contained indications of underlying weakness.