U.S. Economy Experiences Historic Unemployment Drop

The closing down of the U.S. economy because of the coronavirus pandemic is a shock of historic proportions that will seemingly push the national unemployment charge to 16% or higher this month and require more stimulus to ensure a robust bounce, a White House economic adviser stated Sunday.

U.S. Economy Experiences Historic Unemployment Drop

Lockdowns across the U.S. to contain the spread of the novel coronavirus have dented the economy, shuttering businesses and sending unemployment skyrocketing.

A record 26.5 million Americans have applied for unemployment benefits since mid-March, and retail sales, home building, and consumer confidence have all cratered.

The nonpartisan Congressional Budget Office foretells U.S. gross domestic product will shrink at almost a 40% annual rate in Q2, with unemployment cresting at 16% in the third quarter. But even next year, the CBO sees the jobless rate still averaging above 10%.

Before the pandemic hit, the U.S. jobless rate had been hovering at a 50-year low of 3.5%.

The U.S. Congress has already approved $3 trillion in coronavirus reduction in a show of bipartisan support for laid-off workers and an economy in free fall.

Policymakers are actually poised for a battle over federal support to state and local governments whose budgets have been shattered by a drop in tax revenue even as they’ve had to take extraordinary steps during a pandemic that has triggered a U.S. death count approaching 55,000.

New York City needs $7.4 billion in federal aid to offset economic losses from the coronavirus, its mayor stated Sunday.