BBVA Research publishes July U.S. Regional Outlook, June employment report

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BBVA Research has released its U.S. Regional Outlook for July 2020 and an analysis of the June employment report. The ongoing COVID-19 pandemic is adversely affecting job growth, leading to uneven economic recovery across states. States like California and Florida are becoming new hotspots, exacerbating job losses, particularly in hospitality and auto sectors. Despite improvements in the labor market, 12 million more individuals remain unemployed than in February.

The unemployment rate for individuals without a high school diploma is at 16.6%, significantly higher than for those with a college degree.

Positive

• The June employment report indicates signs of strengthening in the labor market.
• Improvements noted in employment trends despite significant disparities.

Negative

• 12 million more people are unemployed compared to February.
• Job losses disproportionately affect states with higher COVID-19 case counts.
• Unemployment rates are notably higher among less-educated and minority groups.

HOUSTON, July 6, 2020 /PRNewswire/ -- The BBVA Research team has published two reports: its U.S. Regional Outlook for July, highlighting key factors impacting regional economies, along with its economic analysis of the U.S. employment report. The COVID-19 pandemic continues to impact job growth and other economic indicators.

U.S. Regional Outlook for July 2020

The report, authored by BBVA Senior Economist Kan Chen, notes that the ongoing pandemic is expected to continue damaging regional economies at an uneven pattern. As the curve flattens in New York and New Jersey, two early epicenters, the outbreaks have shifted south and west as California, Arizona, Texas and Florida become new hotspots.

As expected, states with higher cases of COVID-19 experience worse job losses, and states with a larger hospitality sector (Nevada and Hawaii) and auto industry (Michigan) have been affected disproportionately. The outlook indicates that both individuals and businesses are voluntarily cutting consumption and investment to boost their rainy day savings. Read the full report -2020%2F&a=here" rel="nofollow">here.

Economic Analysis on June Employment Report

The analysis -- co-written by BBVA Chief Economist Nathaniel Karp and Senior Economist Boyd Nash-Stacey -- indicates that, despite improvements, there are still 12 million more people unemployed today than was the case in February,

While the June employment report shows further signs of expected strengthening in the labor market, there remain significant disparities among groups. BBVA Research's report indicates that for those without a high school diploma, the unemployment rate stood at 16.6 percent, which is two and a half times higher than those with a college degree. Similarly, unemployment among women was one percentage point higher than men. Overall, trends reflect the more pronounced impact of the pandemic in industries with a higher concentration of minorities, women, less-educated, younger and lower-wage workers. See the full report here.

Led by Nathaniel Karp, BBVA USA's research team analyzes the U.S. economy and Federal Reserve monetary policy. For its analyses, the economists create models and forecasts for growth, inflation, monetary policy and industries. The Economic Research team also follows a variety of issues that affect the Sunbelt states where BBVA USA operates. Follow their work on Twitter @BBVAResearch and @BBVANews_USA.

See the complete library of BBVA Research publications here.

For more BBVA news visit, www.bbva.com and the U.S. Newsroom.

Additional news updates can be found via Twitter and Instagram.

For more financial information about BBVA in the U.S., visit bbvausa.investorroom.com.

About BBVA

BBVA Group
BBVA (NYSE: BBVA) is a customer-centric global financial services group founded in 1857. The Group has a strong leadership position in the Spanish market, is the largest financial institution in Mexico, it has leading franchises in South America and the Sunbelt Region of the United States. It is also the leading shareholder in Turkey's Garanti BBVA. Its purpose is to bring the age of opportunities to everyone, based on our customers' real needs: provide the best solutions, helping them make the best financial decisions, through an easy and convenient experience. The institution rests in solid values: Customer comes first, we think big and we are one team. Its responsible banking model aspires to achieve a more inclusive and sustainable society.

BBVA USA
In the U.S., BBVA is a Sunbelt-based financial institution that operates 641 branches, including 330 in Texas, 89 in Alabama, 63 in Arizona, 61 in California, 44 in Florida, 37 in Colorado and 17 in New Mexico. The bank ranks among the top 25 largest U.S. commercial banks based on deposit market share and ranks among the largest banks in Alabama (2nd), Texas (4th) and Arizona (6th). In the U.S., BBVA has been recognized as one of the leading small business lenders by the Small Business Administration (SBA) and ranked 8th nationally in terms of dollar volume of SBA loans originated in fiscal year 2018.

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SOURCE BBVA USA

FAQ

What does the BBVA July 2020 Regional Outlook report highlight?

The report emphasizes the uneven impact of COVID-19 on regional economies and ongoing job losses.

How many people are unemployed according to BBVA's June employment analysis?

As of June 2020, there are 12 million more unemployed individuals compared to February.

What sectors are disproportionately affected by COVID-19 according to BBVA?

The hospitality sector and auto industry are significantly impacted, particularly in states like Nevada, Hawaii, and Michigan.

What is the unemployment rate for those without a high school diploma according to BBVA?

The unemployment rate for individuals without a high school diploma is 16.6%.

Who authored the BBVA July Regional Outlook report?

The report was authored by BBVA Senior Economist Kan Chen.