Covid-19 in the US: The number of unemployed exceeded 42 million, the lowest April export in 10 years

People line up for job interviews in Arlington, Virginia, USA. (Source: AFP)
People line up for job interviews in Arlington, Virginia, USA. (Source: AFP)

According to a report by the US Department of Labor, the army lost its job at least temporarily in the country because the Covid-19 pandemic exceeded 42 million, when an additional 1.87 million people applied for unemployment benefits. first time last week.

The number of people applying for unemployment benefits for the first time in the week ending May 30 exceeded the forecast but decreased by 249,000 compared to the previous week, indicating that the rate of layoffs is slowing.

According to a senior expert at Jared Bernstein’s Center for Budget and Policy Priorities, figures on top of others are not a sign that the job market is improving but only showing a slow pace of deterioration. than.

The percentage of unemployed unemployed, the number of people actually receiving benefits, increased to 14.8% in the week ending May 23, with 21.5 million people receiving benefits, showing that few people go back to work. According to last week’s report, the percentage of people receiving benefits decreased, as the states allowed businesses to operate.

New figures were released before the May employment report was released by the Labor Ministry on June 5, when the unemployment rate at 14.7% in April is expected to rise.

Bernstein said that the national unemployment rate could be 20% or more, double the peak in the Great Depression.

In addition, in the context of the Covid-19 pandemic, many businesses had to close and traffic was stopped, the import and export of the US dropped to a record in April, causing the country’s trade deficit to increase by more than 7. billion USD, to 49.5 billion USD.

According to a US Department of Commerce report, US exports of goods and services decreased by more than 20% compared to March, or US $ 39 billion, to US $ 151.3 billion, the lowest level in 10 years. Meanwhile, imports dropped by 13.7%, or US $ 32 billion, to US $ 200.7 billion.

Since the beginning of the year, the US trade deficit has increased by US $ 26 billion (equivalent to 13%) compared to the same period last year.

The impact of business closure on disease control is seen across all sectors and commodities such as aircraft manufacturing, air travel, oil, automotive components and clothing.

Although a sharp drop in trade turnover means that the US goods deficit with most countries will fall, its deficit with China increased from US $ 17 billion in March to nearly US $ 26 billion in March. 4.

According to Rubeela Farooqi, an analyst at High Frequency Economics, US exports and imports will continue to decline due to weaker global economic growth and reduced demand both at home and abroad due to the impact of the pandemic.