Avalanche of bankruptcies threatens to PERMANENTLY wipe out more US jobs – ex-Fed insider tells Boom Bust

While the US unemployment rate slightly dropped from April’s high, it might be too early to pop the champagne as the rise in businesses bankruptcies still threatens to shake the labor market, RT’s Boom Bust has learned.

Figures released on Friday showed that the US regained around 2.5 million jobs, surprising analysts who expected another dramatic plunge. The jobs numbers have sent US stocks higher, with the Dow Jones closing over 800 points up.

Despite the positive development that comes amid easing coronavirus restrictions, the number of companies going bust is still rising and could hit a new record this year. It will be a huge blow for the entire US economy, as many permanent jobs could vanish, Federal Reserve insider Danielle DiMartino Boot believes.

“As you start to see bankruptcies, they will flow through not to temporary job losses, but to permanent job losses,” she told RT’s Boom Bust. “That’s going to be the long lasting damage that we see come out from this crisis.”

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