Washington, 8th May: There is a great depression in the US employment sector after the country was being hit by the pandemic, the American job market is in full-on meltdown.
According to reports, fresh joblessness figures released on Friday showed that the coronavirus pushed U.S. unemployment to a staggering 14.7% in the worst decline in payrolls since the Great Depression, and the country got there in just one month. Back in March, the rate was 4.4%.
The U.S. has lost 20.5 million jobs in the pandemic, according to the new numbers from the federal government.
Companies have shed jobs at warp speed because stay-at-home orders meant consumer purchases, the lifeblood of the American economy, halted overnight, along with other vital parts of U.S. economic activity.
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Now, economists say that unemployment may prove painfully slow to recover, even if the virus recedes. On the other hand, psychologists are warning of a looming tsunami of mental health trouble as millions of individuals grapple with what it means to be out of a job and unable to provide for their families.
The new numbers shattered the record of the worst unemployment rate ever achieved after World War 2, which was 10.8% in 1982.
Economists estimate that unemployment maxed out in the Great Depression at about 24.9% in 1933, but officials didn’t start keeping records until a few years later.
A survey by The Wall Street Journal had predicted that unemployment would hit 16% after the US has been hit by the coronavirus pandemic.
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