Covid-19 and Employment State.
Everyone around the globe needs to work to provide for their families. A person will wake up very early in the morning to attend his or her duties for that monthly wage. However, this may not continue as it was because of COVID-19.
Coronavirus Causes Macroeconomic Problems.
Covid-19 has brought an economic shut down that could make 47 million jobs to suffer. Besides, the unemployment rate could surpass 30%. These figures are according to economists at Fed’s St. Louis District.
Many more Americans work in occupations considered to be a higher risk of mass layoffs. These jobs include the ones around the sectors of sales, production, perishable services, and food preparation. Unfortunately, a lot of Americans have already lost their jobs. This is because of the pandemic of coronavirus, and things might get worse than they are already.
Miguel Castro gave his thoughts and wrote.
“These are very large numbers by historical standards, but this is a rather unique shock is unlike any other experienced by the U.S. economy in the last century,”
Back-Of-The-Envelope Aspect.
The back of the envelope means one that gives results of rough estimates faster. Regarding the topic, there are warnings or exceptions to what we call the back-of-the-envelope calculations. This involves non-accounts for people who may leave the labor force, therefore, scaling down the unemployment rate.
Americans Complain About The Situation At Hand.
A total of about 3.3 million American citizens filed previous unemployment petitions. An additional of another 2.65 million is to join later on. A total of 27.3 million people works in jobs that require high contacts.
This might be a difficult time for them since social distancing is of priority as of now. These jobs include the ones of stylists, barbers, food and beverage services and flight attendants. All these figures bring about the average 47 million affected persons.
In Comparison With The Great Recession And The Great Depression in The United States.
The Great Depression means a long-time downturn in economic activities. The Great Recession which occurred in the late 2000s refers to a time of low economic activities. The difference is that TGD is much worse than TGR.
The Great Depression happened in the 1930s and begun with the United States of America. It is the longest widespread depression and the global GDP fell by over 10%. The tax revenues, profits, personal income and prices went down. Comparing with today’s crisis, it seems to be much worse than the mentioned two economic periods.
Unemployment numbers seem to be 3 times worse than the highest of The Great Recession. The unemployment rate of over 30% is higher than 25% of The Great Depression.
St. Louis Fed President’s Views.
Bullard seems to take the situation of unemployment in a relaxed approach. He speaks of hope and a brighter future to come. We see the situation to be bad during these first quarters of the economy.
He says that everyone will be back in their jobs after the virus goes away provided everything is still whole.
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