After more than 9 years of solid job creation, the American economy was halted net by the coronavirus, which caused the destruction of 701,000 jobs in March … The unemployment rate should exceed 10% by June, according to experts.
After China and Europe, the coronavirus is rapidly spreading to the United States, causing the closure of very many companies, and exploding unemployment across the Atlantic.
Friday, the US Department of Labor announced that the US economy destroyed 701,000 jobs in March, ending an uninterrupted series of 113 months of job creation, 9 years and 5 months, a record … The unemployment rate jumped from 3.5% in February (its lowest level in 50 years!) To 4.4% in March.
These figures, which relate to a rolling month ended March 12, however, show only part of the damage inflicted by the coronavirus on the American economic fabric, job losses having suddenly accelerated after March 13, date on which Donald Trump has declared a “national emergency” in the face of the Covid-19 pandemic.
Towards an unemployment rate between 10% and 20%?
Weekly data for the two weeks ending March 28 revealed 10 million new jobless claims, an all-time high that speaks to the violence of the Covid-19 shock. Economists believe that the unemployment rate should quickly exceed 10% to 15%, or even more by June …
Some economists predict that up to 20 million jobs will be lost, which would raise the unemployment rate to 20%, a level never reached since the Great Depression of the 1930s.
Extensive voluntary departure plan at Boeing
In March, the sectors most affected by job losses were not surprisingly those of the hotel and leisure industry (-459,000 jobs), followed by business services (-52,000 jobs) and retail sales (- 46,200 positions). For retailers, this figure is set to explode, most chains of non-food stores having announced layoffs from the end of March.
Among the latest companies to announce employment measures is Boeing, which will offer its more than 150,000 employees a voluntary departure plan, including early retirement, to offset the financial impact of the coronavirus crisis .
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