The coronavirus pandemic continues to have a significant impact on the US labor market. In the week up to and including July 11, another 1.3 million people applied for unemployment benefits, the Department of Labor in Washington said today. This means that there were only around 10,000 fewer applications than in the previous week.
The persistently high number shows that the largest economy in the world is still in a severe crisis despite the relaxation of the corona virus requirements. The new applications reflect the short-term development of the labor market.
Recession expected
Experts anticipate a recession in 2020 and fear that the unemployment rate could still be just under ten percent at the end of the year. Most recently, the unemployment rate dropped from 13.3 percent in May to 11.1 percent in June. However, the statistics were only based on data that had been collected up to the middle of the month.
The potential impact of the recent dramatic escalation of the pandemic has therefore not yet been reflected: several states, particularly in the south and west of the country, have again put restrictions on bars, fitness centers and other businesses, which is likely to have had a negative impact on the labor market.
Before the US pandemic escalated in March, the unemployment rate was 3.5 percent, the lowest in decades. The pandemic then largely brought public life to a standstill, with many shops, restaurants and factories across the country temporarily closed.
