More than 3.8 million jobless people in the U.S. have applied for unemployment support last week as the country’s economy slid more into crisis, worst that has hit the world’s biggest economy since the 1930s.
About 30.3 million people have filed for unemployment support for like six weeks now since the coronavirus outbreak forced millions of employers to sack their workers.
The figure outnumbered people living in the New York and Chicago metropolitan areas put together, and it’s by far the worst layoffs the country has ever recorded. It could be said to fall in a ratio of more than one in six American workers.
Those who didn’t layoff their workers are slicing off payrolls to save money. Economists have predicted that the unemployment rate for April could rise to 20% and that would be the highest rate since it reached 25% during the Great Depression.
The government estimated this week that the economy shrank at a 4.8% annual rate in the first three months of this year, the sharpest quarterly drop since the 2008 financial crisis. Yet there is no hope of remedy yet.
Experts said that the economy is expected to contract in the April-June quarter by as much as 40% at an annual rate, the weakest any quarter has seen since the government began keeping such records after World War II.
The coronavirus struck hard on the economy when it also brought to halt businesses like factories, hotels, restaurants, department stores, movie theaters, and home sales while households are cutting down on spending.
With some signs that the coronavirus pandemic may have plateaued it some areas of the country, a few governors of states are beginning to reopen economies gradually. But most Americans remain wary of returning to shopping, traveling, and other normal economic activity.
That’s proof that many companies will struggle with diminished revenue for a long time and might not be able to rehire laid-off workers.