While the total number of Kovid-19 cases in the USA has exceeded 100 thousand, many places are quarantined. The shops and businesses in many states, especially New York, began to close, and people began to go out just to meet their basic needs.
St. According to the studies of Louis Fed, if this quarantine period will continue for a long time, millions of people may remain unemployed. When we say “millions” here, we are talking about 47 million people, not 2-3 million.
Like a Disaster Scenario
US President Donald Trump announced a few hours ago that the coronavirus pandemic could be brought under control in early June. The Trump administration expects life in the USA to return to normal in summer, or rather hopes.
St. Louis Fed has done a new research to estimate what might happen if this pandemic lasts longer. Fed’s research shows that 47 million people may be unemployed during this process.
According to the news of CNBC, 66.8 million people currently working in production, sales, food preparation and service areas are at risk of being unemployed. In addition, 27.3 million people who work in jobs such as barbers and service personnel, ie “high level of contact”, may remain unemployed.
The Fed predicts that an average of 47 million people may remain unemployed if the coronavirus pandemic lasts longer than expected. If we include citizens who are currently unemployed on top of it, the total number of unemployed in the USA will increase to 52.8 million, which means that the unemployment rate will increase to almost 30%. For a comparison, we can say that the unemployment rate in the Great Depression is 24.9%.