Usa: significant rise in unemployment rate expected
Due to the coronavirus pandemic, the unemployment rate in the u.S. Was again expected to rise significantly in may: analysts expect a rate of about 20 percent. That would be the highest value for many decades.
The U.S. Government will release the data for the month of may today (friday 14).30 a.M. CEST). In april, the unemployment rate in the world’s largest economy was 14.7 percent, ten percentage points higher than the previous month.
Since the corona pandemic came to a head in march, more than 42 million people in the u.S. Have lost their jobs at least temporarily – more than ever before in such a short period of time. Particularly affected were members of minorities such as latinos and african americans, which may have added fuel to the recent protests following the death of george floyd during a police operation.
As a result of the gradual easing of exit restrictions in most states, the number of new weekly applications for unemployment benefits recently declined. However, the slight easing of the situation was only reflected to a limited extent in the statistics for may, because only labor market data up to the middle of the month are used for this purpose. In april, authorities had warned that the unemployment rate could already be as high as 20 percent because of problems with the survey.
Many shops, factories and restaurants in the usa are now allowed to reopen under certain conditions. US president donald trump’s administration therefore hopes that the labor market will stabilize again quickly in the second half of the year. However, the job market as a whole is severely depressed. Experts believe that even by the end of next year, unemployment could still be just under the 10 percent mark.
Until february, it still looked like a year of solid growth and new stock market records in the usa. The unemployment rate was just 3.5 percent, the lowest level in decades. This was an ideal starting point for president trump to seek re-election in the november election. The corona crisis is therefore highly inconvenient for him and was also allowed to give his democratic challenger joe biden a tailwind.
According to data from the university of johns hopkins, there are nearly 1.9 million known corona infections in the u.S. And more than 107.000 death trap. This corresponds to almost one-third of the infections confirmed worldwide and a good one-fourth of the death rate.
The u.S. Congress has so far approved corona stimulus packages worth around 2.7 billion u.S. Dollars, equivalent to a good ten percent of annual u.S. Economic output. The US federal reserve (fed) has also launched programs to prevent a crash of the economy and financial markets. According to fed chief jerome powell, the corona pandemic has plunged the u.S. Economy into the worst recession since world war ii.
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