Unemployment Rate Soars to 14.7 Percent, the Worst Since the Great Recession

Unemployment Rate Soars to 14.7 Percent, the Worst Since the Great Recession

The U.S. unemployment rate soared to 14.7% in April, surpassing the worst figure of the Great Recession, as the coronavirus caused 20.5 million people to lose their jobs. COVID-19 has infected more than 1.25 million Americans and killed more than 75,000, the world's highest number of cases and deaths.

The economic damage has been swift and stunning.

The unprecedented collapse drove the unemployment rate to 14.7% - well beyond the peak hit in late 2009 during the global financial crisis - and from 4.4% in March. During the recovery, from February 2010 to February 2020, 23 million positions were created.

The plunge in non-farm payroll employment was the largest ever recorded since 1939, while the jobless rate was the highest and the biggest increase since 1948, the report said.

And job losses in March were worse than initially reported, falling 870 000 even though the business closures happened mostly in the second half of the month.

Employment fell sharply in all major industry sectors. That category includes the leisure and hospitality industries, where the job losses (7.7 million) neared 50% and arts, entertainment and recreation industries (1.3 million jobs lost).

The Labour Department said the unadjusted unemployment rate in April would have been nearly 5 percentage points higher had workers been classified as unemployed on temporary layoff, rather than employed but absent from work due to other reasons.

Russian Federation on Friday registered more than 10 000 new coronavirus cases for the sixth day in a row, after emerging as a new hotspot of the pandemic, AFP reports.

Then there's this observation that Bureau of Labor Statistics Commissioner William W. Beach included in his comments: "In addition to the increase in the number of unemployed people, there was also an increase in the number of workers who were classified as employed but absent from work for the entire reference week".

Prime Minister Mikhail Mishustin appeared on television for the first time since announcing that he has been infected on April 30.

Trump said on Friday that the massive United States job losses aren't a surprise and that he shouldn't be blamed for it.

MI has been hit especially hard, both by the virus and subsequent job losses.

"Donald Trump utterly failed to prepare for this pandemic and delayed in taking the necessary steps to safeguard our nation against the near-worst-case economic scenario we are now living", Biden said in a statement.

Despite almost $3 trillion in financial aid approved by Congress in March alone and trillions more in liquidity provided by the Federal Reserve, there is a growing fear that the temporary shutdowns imposed to contain the spread of the virus will become permanent for many companies.

Many also worked fewer hours, the agency said.

Statistics Canada noted, however, that most of the newly unemployed were temporarily laid off, meaning they could return to work when restrictions are lifted.

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