The COVID-19 Pandemic Leaves Over 6 Million Americans Jobless
As the COVID-19 pandemic continues to impact the world, its effects have extended beyond health concerns. The closure of businesses and layoffs of non-essential staff have led to a significant economic downturn in the United States, surpassing the impact of the 2008 recession. Unemployment claims have surged by an astonishing 3,000% in the last three weeks.
Recent data shows that over 6.6 million American workers have filed for unemployment benefits by the end of last week, with a total of around 10 million claims when repeat filings are considered. Economists are describing the situation as “monstrous,” “stunningly awful,” and “a portrait of disaster,” highlighting the severity of the current crisis. This level of unemployment is expected to have long-lasting effects on the overall market.
This week, 6.6 million Americans filed for unemployment.
We need to take comprehensive action:
– Implement universal monthly cash assistance
– Enforce rent and mortgage relief
– Consider student debt relief
– Provide free testing and treatment for all— Rep. Ilhan Omar (@Ilhan) April 2, 2020
Economists like Joseph Brusuelas, RSM’s chief economist, are urging the Trump administration to prepare for a second economic relief package to address the ongoing crisis effectively. This package would need to focus on supporting state and local budgets, as well as Federal Reserve interventions in state and municipal debts, to stabilize the economy.
The March job report is expected to be released soon, but it may not accurately reflect the current magnitude of unemployment as the data collection typically occurs earlier in the month.
