US Unemployment rises another 3 million! US unemployment rises to 33 million due to the Coronavirus. The latest figures from the US labor department comes ahead of the first official monthly report on the jobs market since the pandemic forced lockdowns throughout the country.
In March, the official unemployment rate in the United States was 4.4%, a near 50-year low. Economists now predict it could be as high as 20%, a level unseen since the 1930’s Great Depression. These layoffs have put significant pressure on unemployment systems across the country – both in terms of funds availability and the ability to get unemployed Americans their unemployment insurance benefit claims processed. As an example, California’s jobless benefits fund is “very close” to running out, according to Governor Gavin Newsom.
Tennessee’s unemployment compensation trust fund is also close to empty, with individuals waiting a full month for their benefits. Without these payments, Americans have had to put off paying rent and car payments, while racking up credit card debt to pay for everyday necessities like groceries.
While the pace of layoffs has slowed, and certain states begin the process to reopen the economy, the numbers remain historically high and many states have a backlog of claims to work through. Epidemiologists have also warned that there is a significant risk of more outbreaks and lockdowns may continue to be necessary, as a result of some states relaxing their quarantine restrictions.
ADP reported Wednesday that 20 million jobs had been cut from the private sector in April. This was the worst job loss ADP has recorded since it began keeping track of these numbers in 2002.
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