Record for half a century: the U.S. has lost 26 million jobs in 5 weeks

The number of people fired during the quarantine due to the mers continues to grow to historic highs. The labor Department reported that another 4.4 million people applied for unemployment benefits across the country over the past week. This writes NPR.

Рекорд за полстолетия: США потеряли 26 млн рабочих мест за 5 недель

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In just five weeks the number of applications for unemployment benefits amounted to more than 26 million Is more than the increase in the number of jobs over the last 10 years after the great recession.

However, the pace of job losses slowed. About 5.2 million applications were filed in the week ended April 11, and last week was the third consecutive week of decline in the number of applications.

The crisis of coronavirus suddenly broke off a decade of remarkable growth in the number of jobs. Now the unemployment rate has reached almost 50-year high.

The pace of job losses are a cause for concern for the majority of the population. A Gallup survey showed that a quarter of working Americans believe they will lose their job in the next 12 months. This is a record high level.

The wave of job cuts were initially concentrated in the sectors of travel and energy, but then increasingly affected lawyers, accountants and consultants.

“The lack of precedent means that we don’t know how far it will go, but initially I hope that by the end of may the number of applications falls below one million a week,” says economist Ian Shepherdson.

To stop the flood of layoffs, Congress has drafted a Law on the protection of wages with a budget of $349 billion, According to the law the money is issued to companies if they hire new employees.

As more and more workers are losing their jobs, many States stated that the trust Fund used to pay jobless benefits begin to dwindle.

According to The Wall Street Journal, in mid-April, nearly half of the States reported that their reserves were depleted by almost half.

New York, who spent half of his Foundation, appealed to the Federal government for an interest-free loan in the amount of $4 billion to cover unemployment benefits. More than a million people in the state lost their jobs.

The authorities of Massachusetts, said that the Fund staff has also halved since mid-February, but in California the decrease is 40%.