COVID-19 crisis: US records 1.5 million new jobless claims, total reaches 44.2 million

Amid the unprecedented outbreak of deadly coronavirus, the United States saw at least 1.54 million new claims of people who lost their jobs to seek benefits as layoffs continue in the wake of the global health crisis. According to international media reports, the additionals claims have brought the total to 44.2 million since mid-March. The US Labor Department marked decline for the tenth consecutive week in the applications for jobless aid since they spiked when the COVID-19 crisis began in the country. However, still, the layoffs remain significantly high. 

Just last week the jobs report revealed that the employers added nearly 2.5 million jobs in May which was an unexpected increase that suggests that employment in the country has started recovering. The joblessness decreased from 14.7 per cent but it still remains at 13.3 per cent. Even with the addition of job gain in May, according to reports, just one in nine jobs that were lost in March and April have returned. Currently, at least 21 million in the US are officially classified as unemployed. 

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Fed warns of 'long recovery' 

As the unprecedented outbreak of deadly coronavirus continues to impact the economy, US Federal Reserve Chairman Jerome Powell has cautioned on June 10 that the American economy faces a “long road” to recovery. This came despite the jobs report being positive for May. During the press conference, Powell assured that country’s central bank would continue to support the US economy for “as long as it takes” and also announced that the interest rates offered by the bank would remain near to zero for near future.

Moreover,  a policymaker forecast released by the Federal Reserve revealed that the rates had remained low until the end of 2022. Powell has noted that “this is going to take some time”. Back in December 2019, when the world was still unsure about the novel coronavirus discovered in China, Fed had predicted the American economy to grow by at least two per cent in 2020 and the unemployment rate to be at 3.5 per cent.

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(With AP inputs)

Image Source: AP