The recent Corona Pandemic is hitting very hard all aspect of US Society, as the recent report by Reuters reports that more than 15 Million US citizens have applied to avail the unemployment benefits in the last three weeks.
According to Reuters, the recent surge in unemployment benefit ratio is a clear indication that US economy is feeling the heat from COVID-19 and witnessing deep recessing.
The report released by the US Department of Labor has predicted the ratio of unemployment seeking benefits to pass the mark of 20 million in April.
Last Friday, the US Govt has reported that more than 700,000 US citizens lost their jobs alone in March. This recent figure of job lessness is highest since the last recession in late 2010.
The Chief US Economist at S&P Global Ratings has said that “These dismal numbers suggest another record-breaking April jobs report, “America is now in recession and as it appears to deepen, the question is how long it will it take before the U.S. recovers.”
According to Reuters, the initial number for unemployment benefits suddenly increased from 5.250 million up to 6.648 million until the end of April 4.
As total lockdown in imposed in the USA and more than 90% American are now working from their homes, analysts expecting that the figure might go upward in coming days.
Moreover, the different companies and businesses are also encouraging their workers to immediately apply for the unemployment benefits and get an extra $600 per week up to four months. Thanks to the historic $2.3 Trillion package, as it helps to increase the existing jobless package from $385 to $600 per person per month.
The package is equivalent to about $15/Hour for scheduled 40 hour weekend. As the minimum wage is under 8 dollars per hour.
The economy of the United States has declined sharply in the first quarter and more decline is forecasts for the second quarter. Well known economists have said that the US economy has entered the recession period since March.