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HomeBusinessCorona-crisis: the decline of the high unemployment rate in the US expected

Corona-crisis: the decline of the high unemployment rate in the US expected

After the loosening of the Corona-restrictions in the U.S., analysts expect an improvement in the situation on the labour market. The unemployment rate is expected to decline from 13.3 percent in may to about 12.5 percent for the month of June.

So you would still be nine percentage points higher than in February, because of the Coronavirus pandemic, shops, Restaurants and businesses were closed and millions of Jobs lost. The government will announce the new labor market data today, Thursday.

The Corona pandemic has hit the U.S. economy. More than 45 million people lost since mid-March, at least temporarily, your Job – as many as never before in such a short period of time. In April, the unemployment rate had risen to 14.7, the highest value for decades. As a result of the gradual easing of exit restrictions, the Numbers of new applications fell back on unemployment assistance. Around 20 million people related to regular unemployment benefits.

The optimism about the improvement of the situation on the labour market, however, was overshadowed by a renewed escalation of the pandemic. The US authorities have reported since last week every day about 40,000 new infections, especially from the southern States of Florida, Texas, Arizona and California. Relaxations such as the Opening of Bars were made as a consequence of to reverse or postponed. Companies such as Apple closed again in many places their stores.

The unemployment rate for June is based on data collected until the middle of the month. The new escalation of the pandemic, data are therefore not yet in the labour market reflect.

The further economic development – and also those on the labour market seemed to be very uncertain. Central Bank chief Jerome Powell had warned on Tuesday in the Congress: “The way forward is exceptionally uncertain and will depend to a large part of our success in the containment of the Virus.”

Many analysts expect that the unemployment rate is likely to be the end of 2020 are still at or just under ten percent. They also expect that the ratio will be in the course of the coming year is still significantly higher than before the pandemic.

The unemployment rate in the largest economy in the world was located in February at 3.5 percent, the lowest level in decades. US President, Donald Trump, the bidding in November to a second term, hopes for a rapid and sustainable recovery of the economy in the second half of the year. Most analysts and even the Central Bank – to hold but that is unrealistic.

Since the beginning of the pandemic, data from the University of Johns have been reported in the USA, Hopkins estimated that around 2.7 million confirmed infections. Around 128,000 people died after infection with the pathogen of Sars-CoV-2, can cause the lung disease Covid-19.

Matthew Velterhttps://etrendystock.com/
With 5 years of experience as an editor, Matthew has been a crucial part of eTrendy Stock since its inception. He looks after the editing of news content published on eTrendy Stock. Apart from investing his time in editing, he also provides well-researched news articles for the U.S. niche. Mathew studied at University of central Florida.

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