It is no doubt the pandemic recession that is shaping up the biggest blow to the U.S. economy since the Great Depression. Predictions are rising, causing fear especially for millions of Americans who are losing their jobs and businesses.
According to the Labor Department’s report of Thursday, more than 6.6 million Americans applied for unemployment insurance benefits last week. Whereas, 3.3 million claims from the week before. This is seen for the first time in the history of the U.S.
Job losses are happening in nearly every corner of the world, and many people are likely to be out of work for days now. If past economic depressions are any guide, it could take years to return to pre-employment levels. And there are lingering effects as people lose their property, take on debt, and suffer from mental health issues.
Another alarming prediction by The Economic Policy Institute says that nearly 20 million Americans will be out of work by July if nothing changed. And this would be the worst unemployment situation the United States has faced since the Great Economic Depression. While according to Congressional Budget Office the unemployment rate of the U.S will exceed 10 percent.
Congress has passed a massive aid package in March, which may help but still, a 9 percent contraction in the first quarter and a 34 percent contraction in the second quarter is predicted by Goldman Sachs.
The areas coming into extreme spotlights are hotels, restaurants, malls, hair salons, and theaters. Downsizing is becoming another big cause of frustration for the U.S citizens, as Aerospace giant Boeing offered buyouts to its nearly 100,000 U.S. workers. Subsequently, radio broadcaster Entercom Communications said to layoff its 2,800 employees.
A woman named Mercedes Addington lost her job on March 23, working at a company that sells trucking parts and supplies in Kansas City, Kan, said
“I am very frustrated and scared, I have bills to pay soon and I was counting on this money to get by.”