The Coronavirus pandemic has literally swept away the US economy, and unemployment rates continue to rise. According to a report from the Labour Department in the US, as many as 5 million people filed for unemployment in the last week – making the total tally to cross a staggering 22 million. The news comes after President Donald Trump announced plans to re-open the US economy in parts from May 1. Economists are speculating that this is the worst economic crisis since the 2008 recession.
Julia Coronado, a former economist for the Federal Reserve Board hinted that the unemployment rates could soon hit the double-digit mark. ON the other hand, Jay Bryson, the acting chief economist at Wells Fargo acknowledged the importance of the labor market in the US economy stating that it is at the edge of an unprecedented fall.
While the unemployment rates continue to rise, some even rating is at an all-time high, the pandemic is showing no signs of halting. Viable vaccinations are still not available, and economists are of the opinion that, if it continues, the global economy could well take an irreversible hit.
Amid the rising unemployment scenario, the US government has announced a $2.2 trillion coronavirus relief package under the CARES Act. The positive ray of hope is that certain prominent policymakers are of the opinion that the labor market will eventually recover.
But as of now, the US economy looks pretty grim and so does the employment scenario. Recently, business leaders across the US disapproved of Trump’s idea to re-open certain parts of the US economy in the first week of May.
It remains to be seen, how the global economy responds to this horrific pandemic, but right now, it is pretty sensitively placed.