In the US, due to the prevailing pandemic, the unemployment rate has surged up to 14.7%, as the epidemic has got the economy worse worldwide.
As per last week’s figure reported by the Department of Labor, in excess of 3 million people filed for the unemployment benefits program launched by the US to help the people who have lost their jobs amid deadly pandemic.
The constant spike in the unemployment rate in the US could devastate the economy, many of the people could lose their temporarily-left jobs, and the rate of bankruptcy in the country could be surged.
US Economy Expert at Capital Economics, Paul Ashworth showed disappointment in his statement saying the continuous rise in claims is disappointing, this seems only a small ratio of people have been re-employed after easing the lockdown.
In the US, two months before-when the pandemic had not hit the US, the situation was, in contrast, the ratio for unemployment was just 3.5%. Amid a struggling period against coronavirus, the US has seen the worst rise in the unemployment rate in a decade.
The Department of Labor reported the record fall in every economic area. Pandemic has hit Leisure and hospitality, payslips have been diminished by 7.7 million. 2.5 million employees, worked in education and health departments, have been cut.
In excess of three-fourth jobless people have said their jobs were temporarily halted, this suggests that these people are hopefully looking forward to re-join soon if the economy will bounce back.
The deadly pandemic has got the US economy map worse after besetting the US with 1,292,879 cases nationwide. The country has seen a record spike in the number of unemployment claims that it did not observe since the 2008 economic crisis.
Economists say the economy could take a u-turn if the businesses would start to reopen. But they also warned with the bad side of the situation saying major changes could have to be seen in business modeling, such as, limited people in restaurants could push the employers to hire fewer workers to meet their needs, this way jobs rate would be reduced. The longer the restrictive period, the lesser will be the job rate. Even the temporary joblessness would become forever joblessness.
The jobless rate among the Black employees reached 16.7%, the highest rate since 2010. White workers have seen the unemployment rate rose by 14.2%.
The Department of Labor cautioned with the more critical situation ahead. They said the unemployment rate could touch the height of 20% if the temporarily-removed people don’t get re-joined by the employers.
If the US does not overcome a pandemic situation, the unemployment ratio would likely increase due to the shutting down of businesses. And the temporary jobless people would become permanent if the epidemic is not contained by the US, analysis claims.