Unemployment rate in US jumps to 14.7%, beats the Great Depression score

As per report published by Washington Post, the current unemployment rate of 14.7% is the highest rate in USA, since the Great Depression.

Unemployment rate in US

Washington DC: The unemployment rate in USA jumped from 10.3% to 14.7% in the month of April 2020, due to the crisis of corona virus outbreak. It represents the largest over the month increase in unemployment, since the year 1948.

The Washington Post reported that this unemployment rate of 14.7% is the highest since the period of Great Depression.

“In April, the unemployment rate increased by 10.3 percentage points to 14.7 per cent. This is the highest rate and the largest over-the-month increase in the history of the series (seasonally adjusted data are available back to January 1948),” the US Labour Department said in its monthly jobs report.

The US people lost over 20 million jobs in April 2020. It boosted the unemployment rate of the country to nearly 15%. It is because of a pandemic induced economic spiral.

“Total nonfarm payroll employment fell by 20.5 million in April,” the report said. “The changes in these measures reflect the effects of the coronavirus pandemic and efforts to contain it.”

The month of March 2020 saw the US population losing 710,000 jobs. It was because of social distancing measures being implemented. It began keeping at least 80% of the 310 million strong population at home. This new report came a week after the statement issued by the Commerce Department, saying that the US economy shrank by 4.8% in the first three months of the year 2020.

The newly released report says that there was job loses in the every major sector of labour market. It recorded particularly heavy decline in the non-essential leisure and industries belonging to hospitality sector. It was also reported by the labour department that 33 million filing for the first time unemployment benefits by the Americans over the past seven weeks. It indicates more job loses are expected to come.

The US Government has already announced about 3 trillion US Dollars COVID-19 relief in all the previous packages. It includes more than 2.1 trillion US Dollars in the initial Corona virus Aid,Relief and Economic Security (CARES) act.

“Our nation is in the midst of historic health and economic crisis, and even this record-shattering April jobs report understates the suffering in our nation today. The dire job losses show the urgent need for a bold CARES 2 package that is equal to the crisis gripping the American people,” House Speaker Nancy Pelosi said in a statement on Friday.

Pelosi also said that the new package must provide strong support to state, local and tribal governments. They desperately need funds to pay to the vital workers. These workers help to keep US safe. These workers are in danger of losing their jobs at present.

White House Press Secretary Kayleigh McEnany told reporters on Friday that the Trump Administration wants the Congress to reconvene soon to come up with another phase of relief funding.

President Donal Trump, in the meantime later in the day said that this unprecedented job loss was not his fault. Mean while the Presidential candidate from Democratic Party, Joe Biden, accused the US President of favouring big businesses and investors.

The US has so far recorded 1,283,908 number of confirmed cases of COVID-19. It has also recorded over 77,000 deaths due to Corona virus infections. This data was provided by John Hopkins University in the United States of America.