The Coronavuris pandemic is increasing the risks for Americans as it is causing an economic downfall and leaving more than a million Americans jobless. Lockdown guidelines urged people to stay at home as much as possible. As a result of which, unemployment became a reality for many as businesses shut down nationwide.
The nature of unemployment and losses related to the local businesses are now putting the US into a deep economic recession. It is no surprise as the economic experts believe that the employment benefits are increasing by up to 1.5 million.
The National Bureau of Economic Research has released information on the current US economy. This report is formally announcing the start of an economic recession.
Amid rises in surcharges on receipts and bills, many people are struggling to find new jobs. while these unemployment benefits are the last resort for these jobless Americans.
In the last 13 weeks, from the start of the virus crisis, claims for benefits are nearly 45.7 million. This figure was reportedly highest i.e. 6.9 million in March. It may come as a relief that the numbers are now slowly decreasing.
The US is not the only country braving the adversity thrown their way by a coronavirus. Economists find this recession is two consecutive quarters of negative growth in GDP. Committees in other big countries like Canada, Brazil, and Spain date theirs differently. They date business cycles considering a large variety of economic markers.
The lethal coronavirus is forcing the country to step into a steep recession it has not seen yet in its history. It might make millions of Americans jobless and it is something that is unavoidable in these circumstances.
Companies face an increase in costs and little payoffs, while they struggle to pay off their debts. Laying off workers is part of the preventive plans that companies are working upon. However, it is increasing the national unemployment rate which is highest right now.
The novel coronavirus spreads through respiratory droplets. Considering its high transmission, medical experts suggest social distancing to be the best preventative measure. But on the other side, it means no gatherings or people even in professional capacity.
In the US about 45.7 million people have no jobs or any type of employment. A report from last month shows that the US unemployment rate stands at 13.3%. Even though the lockdown is easing out and economies are reopening.
The number 13.3% has only come some way down from April’s spike of 14.7%. This being the highest most alarming number since the Great Depression. The Federal Reserve says by the end of 2020 they expect the number to still be above 9%.
After effects brought by the coronavirus Pandemic to leave Americans jobless is now going international. The sales report for retail businesses in the entire world is gloomy.
New research released this week shows an interesting trend in expenditure. The wealthiest households in the US, are spending less money during the recession. During the coronavirus recession, lower-income households are spending more in comparison.