32% American’s Are Predicted To Be Unemployed Due To Coronavirus
It seems like job loss may be one of the side effects of coronavirus. Millions of people across the United States are currently jobless and scrambling to apply for unemployment as they wait to see if their businesses will ever re-open. It is expected that 47 million jobs will be lost during this pandemic according to a Federal Reserve estimate. Coronavirus is predicted to lead to a staggering 32% unemployment rate.
A Record Amount Of People Have Continued To Apply For Unemployment
Restaurants, bars, and retail stores are just a few of the places that had to close due to coronavirus. This led to millions of people getting laid off or put out of work. The good news is that these people are eligible to apply for unemployment and will hopefully start receiving checks soon. In Pennslyvania alone, nearly one million people have applied for unemployment in the past two weeks. Several people have noted that the process to file for unemployment has been a bit of a challenge.
Twitter users commented on how difficult the process is and it sheds light on the fact that something more needs to be done to accommodate such a high volume of people.
Unemployment websites for each state have crashed numerous times after reaching a high volume of people each day since the outbreak started. However, people are still urged to keep trying until they can finally reach the end of the process. The phone lines have also been ringing off the hook with hundreds of thousands of calls each day.
Social Distancing Played A Factor In People Being Laid-Off
Many offices had to close because of the fact that coronavirus can be spread so easily by human contact. Social distancing is being enforced and people are urged to stay at least six feet apart from each other. This is hard to do when you are in a crowded office. Many states like New York, New Jersey and Connecticut are under work from home orders but not all jobs can be done from home, thus leaving people out of work.
Public figures and government officials have constantly been urging people to stay home. They have mandated that only essential workers should be out during their working hours including medical staff and safety officers.
The Unemployment Rate Is Projected To Be Higher Than During The Great Depression
The highest rate of U.S. unemployment was 24.9% in 1933, during the Great Depression. It seems like we are heading to an even higher rate of unemployment as coronavirus continues to spread across the United States. Healthcare workers are continuously being exposed to the virus, adding to the number of infected and continuing it to spread. Some have even quit due to the risks involved and will not be eligible to receive unemployment benefits.
President Franklin D. Roosevelt’s New Deal programs helped the United States overcome the tremendous unemployment deficits between 1933 and 1939. It is unclear how the United States will overcome this deficit after the virus is finally contained. There are still 67 million jobs that are considered to be at a high risk of being laid off.
Some businesses may not reopen after the pandemic runs its course since they are not currently making money. Other’s may reopen and look to support from consumers in their communities to keep them afloat.