The worldwide economic crisis caused by the Corona virus epidemic may cause the unemployment rate to reach its high in April. It is most likely to remain after the Great Depression of 1929.
According to FactSet, the data provider, the unemployment rate for April is estimated to be 16 percent. Whereas it was 4.4 percent in March. Economists are expected to cut 2.1 crore or more jobs in April. If that happens, it means that the growth recorded on the employment front after the 2008 recession will all be over in a month. To prevent the spread of the corona virus, many countries worldwide opted for lockdown. This affected economic activities very badly.
According to World Health Organization data, so far 11,71,185 cases of corona virus have been reported in the US, while the death toll has increased to 62,698.
Diana Swank, chief economist at Grant Thorton, said, ‘The unemployment we are talking about right now is very surprising. This is a unique shock because the reason is also unique. This is something we have never seen. ‘ The US government will release the official data for the April unemployment rate on Friday morning. On Thursday, the government will issue a weekly report to the beneficiaries of unemployment allowance. It is estimated that 3.5 million people applied for it last week. If these figures are correct, the number of unemployed people will be 3.4 crore since lockdown.
The actual April unemployment figures may also differ, as the two methods of collecting data are different. The government collects the data of layoffs by surveying households and businesses. The new hiring figures are also added to the total figures. Amazon and other grocery companies have also done large-scale recruitment recently.