April 10, 2020
In less than a month, the United States has seen massive cuts to its employment levels due to COVID-19. Thus far, 16.8 million Americans are out of work, and 6.9 million filed for unemployment for the week ending on March 28th. On average, state unemployment claims are 3,500% higher than they were at the same time a year ago. These losses are the most significant since the U.S. started tracking employment in 1948, and there is a possibility that the unemployment rate will hit 15% in April, a level last seen during the Great Depression. Attempts to combat the economic crisis are already underway. Most recently, the U.S. Federal Treasury stated its plan to provide as much as $2.3 trillion in loans for households and businesses alike.
On an international level, 19 countries that use the euro collaborated on an aid package that may distribute over a half-trillion euros to citizens and businesses, as well as healthcare systems. Many of these nations have also subsidized their workers’ pay. However, several major international organizations – including Oxfam International, the International Monetary Fund, and the United Nations labor organization – have warned that huge spikes in poverty and unemployment, as well a global recession, could be on the horizon.
Source: Smith, Michelle R.; Rugaber, Christopher; and Villeneuve, Marina. 2020, April 9. US job losses surge as world leaders urge Easter distancing. Associated Press.