- A new study has found fewer than expected U.S. businesses were driven to ruin by the economic effects of the COVID-19 pandemic
- Research by the U.S. Federal Reserve has found an additional 200,000 companies may have failed over the last year — less than originally forecast
- The study also found the failing businesses aren’t likely to have had a huge impact on the country’s unemployment rate
- The U.S. has lost over 567,000 lives to the coronavirus, while the unemployment rate is currently hovering around 6 per cent
- Both the Biden and Trump administrations also spent billions on stimulus payments and wider economic packages to combat the COVID-19 downturn
A new study has found fewer than expected U.S. businesses were driven to ruin by the economic fallout of the COVID-19 pandemic.
New research by the U.S. Federal Reserve has found less than 200,000 additional companies are estimated to have failed during the last year.
That number is below original forecasts but comes on top of the up to 600,000 businesses which fail on average any given year.
The researchers from the U.S. Central Bank also noted that the true impact of COVID-19 on business has been tough to measure.
However, its believed companies such as nail salons, or hairdressers, made up almost half of all additional businesses to go under in the last year.
Additionally, the research noted that the increase in businesses going under due to COVID-19 is unlikely to have hugely impact the country’s unemployment rate.
At the height of the pandemic, the U.S. jobless rate hit a high of around 15 per cent, before dropping back down to just over 6 per cent last month.
Both the Biden and Trump administrations have spent trillions of dollars propping up the economy through stimulus spending.
Over $700 million dollars of the spending money went towards paycheck protection program loans, which are designed to keep workers employed.
Meanwhile, altogether it’s reported that more than half a million people have died in the U.S. after contracting the coronavirus, according to figures from John Hopkins University.
Additionally, the medical institution reports more than 31 million people have tested positive for COVID-19 since the pandemic began in early 2020.