The United States( US ) is one of the countries worst hit by the coronavirus outbreak. Every single day in the states is a struggle to fight the pandemic. The impact has been witnessed in all the sectors of the economy. Companies such as Uber, Lyft and Airbnb are announcing production cuts due to the stalled manufacturing processes.
In the wake of the situation, economists say the monthly unemployment rate for April is likely to be 15 percent of more as against a 3.5% recorded two months ago.
US More than 33 million people have filed for unemployment benefits in the last six weeks. Last week, 3.2 million Americans have applied for unemployment benefits as the economy continues to survive the disaster.
This surge raised the total count of jobless in the states to 33.3 million that is approximately equivalent to 20%of the workforce. However, the number of weekly applicants has reduced after March which witnessed the peak of 6.9 million applications. But still the high numbers are an incessant source of worry for the government. “The significant rise in continuing claims… is a little disappointing since it suggests few people are being recalled at work, “said Paul Ashworth, Cheif US economist at Capital Economics.
Moody’s investors service has predicted that the unemployment rate would come to ease at 7% by the end of the year, but that forecast still remains highly dependant on the virus containment. US The longer the shutdown persists the harder it will be for the economy to recover the losses. The firm’s analysts said, ” If the virus does not contain the pandemic and the economy remains shut beyond the second quarter, the unemployment rate would rise further, and many job losses that we currently view as temporary would likely become permanent.”