The number of unemployed in the US as an illustration of the impact of the pandemic
The virus epidemic has a detrimental effect on market US labor.
Just last week more 3 million people have applied for unemployment benefits.
The US government is trying to save the economy.
A huge jump in the number of applications for unemployment benefits in USA clearly demonstrates the detrimental impact of the coronavirus epidemic on the world’s largest economy. Only last week they applied for benefits nearly 3.3 million Americans.
This is the sharpest increase in the indicator in the entire history of observations. Cumulative hits quadruple previous all-time high.
US economy asks for help
The coronavirus pandemic is slowly but surely affecting almost everything aspects of hundreds of millions of people around the planet. Restrictions on movement and the forced closure of businesses left many unemployed and, accordingly, funds to subsistence.
Last week it became known about the aggressive growth massive layoffs in the US labor market. Fired from SurveyUSA already over 14 million people, which is 9% of the total labor force of the country.
9% of working Americans (14 million) so far have been laid off as result of Coronavirus; 1 in 4 workers have had their hours reduced. Latest from SurveyUSA: https: //t.co/CSoFsHs0JT
– SurveyUSA (@surveyusa) March 19, 2020
Given the massive layoffs, it is not surprising that the number of claims for benefits So rose sharply. According to the official report, last week the number of applications for benefits amounted to 3.283 million.
This is a record leap indicator throughout history. Previous all-time high was recorded in 1982 year at the level of 700 thousand, which is four times lower than the result recorded last week.
BREAKING: US unemployment claims come in at 3.2 million, four times higher than previous record.
– The Spectator Index (@spectatorindex) March 26, 2020
As noted in the tweet below, in the context of the sudden spike, all previous cases of bid growth appear to be insignificant..
This chart. pic.twitter.com / xda0FXJO6S
– Sven Henrich (@NorthmanTrader) March 26, 2020
The worst is yet to come?
Against the background of what is happening, many company small businesses are trying to make ends meet by focusing on delivery of goods and similar services. And at this stage it is unclear how large-scale the effect of the epidemic will be for economy and citizens, since now there was an unprecedented situation in markets and in the world in the whole.
Critics of the US package support economies amid the coronavirus pandemic argue that these measures will lead to an increase in the number of unemployed. Within the new legislation the Fed will print trillions dollars, and most of the adult population will receive a lump sum of $ 1,200 to stimulate the economy. This measure will provoke a further increase in the number of applications for unemployment benefits, where will be include self-employed and part-time workers, skeptics believe.
Until us everyone can only guess how will be full blown the effect of unprecedented social exclusion measures. One thing is clear – the US system of benefits Now allows you to cover yet great part of the population, which means that next week we can see even more growth number of applications for unemployment benefits.
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