USA Faces Unemployment Chaos Amidst Corona Pandemic
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09-Jul-2020

USA Faces Unemployment Chaos Amidst Corona Pandemic

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Last week in the US, over 1.3 million people applied for unemployment relief from the government. This suggests that many employers are still doing layoffs in the wake of the epidemic.

Rapid layoffs occur at a time when six major states of the US, Arizona, California, Colorado, Florida, Michigan and Texas, have reversed plans to open up the economy due to the tremendous increase in new cases of coronavirus infection.

These states contribute one third to the US economy. Fifteen other states have also stopped plans to open markets. The postponement of several states' simultaneous plans to open up the economy has had a negative impact on the job market. 

The Labor Department's Thursday report shows that the number of applications for unemployment relief has come down to around 1.3 million in the previous week. It was 1.4 million a week ago. However, the number of people applying for unemployment relief is above 10 lakh for the 16th consecutive week. 


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Prior to the epidemic, the record for most applications for unemployment relief in any one week was less than seven lakhs. During this period, the number of people already getting unemployment relief has come down by seven lakhs, and now this figure has come down to 18 million. This suggests that some companies are beginning to reappoint their employees. 

Apart from this, an additional 10 lakh people applied for self-employed and short-term workers last week under another government relief program. The unemployment relief scheme has been prepared for the first time for self-employed and short-term workers. 

It is noteworthy that new cases of coronavirus are still increasing rapidly in the four states of Arizona, California, Florida, and Texas that have contributed most significantly to the US economy. These four states account for more than half of the total number of people infected with the coronavirus in the US.

Now for the United States of America, the major challenge is to reduce the unemployment issue as well as tackle the ongoing corona pandemic. This is a tough time for fellow Americans and they must fight it hard till the last breath. 

Like every storm, this shall too pass and when there is the pro-people and nationalistic government like Donald Trump there is bound to be no problem at all for any problem.

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