The number of Americans applying for unemployment benefits increased by 3 million last week. Thus, after only 8 weeks, more than 36 million American workers have lost their jobs.
According to Business Insider, on 14/5 the US Department of Labor announced the number of employees applying for unemployment benefits increased by 3 million in the previous week, to more than 36 million after 8 weeks.
By comparison, during the 2008-2009 global financial crisis, the highest number of people applying for unemployment benefits in a week was only 665,000.
In March, the Federal Reserve Bank St. Louis forecasts that the number of unemployed Americans will increase to 47 million in the second quarter of 2020, equivalent to a 32% unemployment rate.
This will be a new record, exceeding the level of 24.9% during the 1930s Great Depression.
According to Business Insider, getting workers back to work as quickly as possible is the most important key for the United States to recover, because spending is the foundation of this national economy. But the unemployed often very limited spending money shopping.
Reputable financial corporations also make dire predictions. Multinational investment bank Goldman Sachs believes that US GDP will drop to 39% in the second quarter of 2020. The number estimated by JPMorgan is 40%.
A small hope among the favorable statistics is that 18.1 million Americans applied for unemployment benefits in April 2020 as workers who were temporarily laid off during a pandemic.
Many hope they will return to work soon when the economy is open.
However, many experts fear a series of businesses will not survive when the pandemic ends. On May 13, US Federal Reserve Chairman Jerome Powell warned that the loss of thousands of small and medium-sized businesses would limit the speed of economic recovery.
On May 12, the US Democratic Party proposed an economic stimulus package worth $ 3,000 billion to subsidize teachers, firefighters, postal workers and employees from other essential industries.