As the coronavirus outbreak continues to destroy the job market in every economy, about five million more people filed unemployment claims for the first time since last week in the US. Social distancing measures executed by President Donald Trump have shut down most of the businesses across the country and parts of it are expected to reopen from May 1.
A total number of 22 million people went jobless within a month due to mandate lockdowns in various states. The nation is facing the worst crisis ever since the great depression. The numbers are still rising as state unemployment officers are even now processing claims filed by people rushing to the offices.
"The job losses are historic which means we are going to experience double-digit unemployment rate this time," said Julia Coronado, a former economist at Federal Reserve Board. Economist and policymakers are trying their best to handle the crisis as weekly job claims have become a major issue.
Labor Market is highly correlated with the economy and "It is showing us what I think we all know, that the economy is falling off a cliff at an unprecedented rate," said Jay Bryson, acting chief economist at Wells Fargo, told NBC News. Public health crisis continues simultaneously and no one knows when this pandemic will end.
Unemployment rate reached around 14%
According to Joel Prakken, chief US economist at IHS Markit, the unemployment rate has already crossed 10 percent and reached around 13 or 14 percent. The federal government is scheduled to release unemployment data of April on May 8 as the economist predicts that it is going to be very serious as job losses have already crossed 20 million.
Numbers that were released on Thursday includes the claims filed weeks ago and are processed last week. Weekly claims reflect that states will continue to get flooded by the first time filers. The $2.2 trillion coronavirus fiscal package has expanded the eligibility for unemployment insurance. This is also one of the reasons that state unemployment offices have been receiving more claims. Under this, part-time workers and contractors are also allowed to file the claims. Policymakers are hoping the economy to get back to normal as quickly as its fall and employers decide to rehire the workers whom they have laid off.