There is mass unemployment in the largest economy in the world. The unemployment rate is now in double digits.
In the coronavirus crisis, the wave of initial jobless claims in the United States is subsiding somewhat. Last week, 3.16 million citizens made an initial application, as the Department of Labor in Washington announced on Thursday. That is still more than the average experts had predicted – they had reckoned with a total of 3 million.
As of March 21, applications for government assistance have totaled around 33 million. However, the number of applications has been falling steadily for the past five weeks. The peak of the tidal wave was reached in the week leading up to March 28th with almost 6.9 million initial applications.
“It should be noted that the number is still high and the burdens from the corona pandemic continue to burden the labor market,” said economist Patrick Boldt from Landesbank Helaba. The recession worries initially persisted.
The virus crisis put an abrupt end to the year-long boom on the American labor market and triggered mass unemployment. For the government’s labor market report for April due on Friday, economists surveyed by the Reuters news agency expect the unemployment rate to jump to 16 percent – in March it was just a quarter of this (4.4 percent). At the same time, they put the expected job cuts last month at a record 22 million.