Almost 3.2 million people applied for unemployment benefits last week after the coronavirus cost them their jobs. Some 33 million new claims have been filed in seven weeks, a record-shattering surge that has sent the economy plunging into a deep recession from which it may take years for the U.S. to recover. The states of California, Texas, Georgia, Florida, and New York reported the biggest increases in new claims, according to the Labor Department. California, the largest U.S. state, has received the most jobless claims overall.
The loss of so many jobs is bound to impair the economy for months and even years. The federal government has sharply increased unemployment benefits, loosened eligibility standards and is effectively paying many companies to keep idled workers on payrolls until the crisis fades, but millions of jobs could be permanently lost as thousands of companies fail. The bigger the damage to the labor market, the harder it will be for the U.S. economy to return to its pre-crisis level of growth.
The loss of so many jobs is bound to impair the economy for months and even years. The federal government has sharply increased unemployment benefits, loosened eligibility standards and is effectively paying many companies to keep idled workers on payrolls until the crisis fades, but millions of jobs could be permanently lost as thousands of companies fail. The bigger the damage to the labor market, the harder it will be for the U.S. economy to return to its pre-crisis level of growth.
Source: MarketWatch
No comments:
Post a Comment