On Thursday, according to the Labor Department, last week, another 2.1 million more Americans filed for unemployment insurance.
With the coronavirus pandemic being a hindrance in the U.S. economy over the last 10 weeks over 40 million U.S. workers have filed jobless claims.
In the last week of March, after the filings eased, about 7 million have applied for jobless claims.
According to economist Daniel Zhao “If UI claims remain in the millions for the next few weeks, it may signal that relaxed state-mandated restrictions alone aren’t enough to staunch the flow of unemployed Americans.”
Further, he adds saying, the elevated UI claims this month is an indicator that the next week’s job reports will show a rise in unemployment rate into high teens or beyond.
He said,” The May jobs report is unlikely to show as stark a change as April’s historically grim report; however, it will show a labor market still deep in the grips of the pandemic.”
Before the pandemic, the unemployment rate in the U.S. was not more than 3.5%.
Right now, the most affected industries are, hospitality, food, drink, services and retail.
Currently, there is major depression with the unemployment rate increased to 15% and it is the highest. In the coming weeks, many economists see the number increasing.
