U.S. Great Depression-level job cuts because of corona virus
The Financial Times (FT) reported on July 3 that the number of unemployed people in the U.S. has soared to the level during the Great Depression, causing the worldwide unemployment crisis caused by the Covid-19.
◇ U.S. application for 6.6 million unemployment benefits last week
The U.S. Department of Labor announced Monday that about 6.6 million people applied for unemployment benefits last week.
It was a record increase, doubling from 3.3 million in the previous week.
Experts' expectations were also far higher. By state, California, Pennsylvania and New York were the first to apply.
From March 15 to the end, more than 10 million people applied for unemployment benefits.
This is the level of the Great Depression in the 1920s and 30s.
The number of unemployed surged as many jobs were temporarily closed to prevent the spread of Covid-19, while some industries, such as aviation and tourism, were hit directly. On top of this, analysts say that the government's stimulus plan was delayed and missed the timing.
The government program is too late," said Torsten Sloke, chief economist at Deutsche Bank, adding that companies are already responding to Covid-19.The pace of layoffs will gradually accelerate," he said.
◇Emerging unemployment in Europe
Europe, like the United States, is seeing a sharp increase in the number of unemployed people.
In France, about four million people applied for short-term unemployment benefits in two weeks. This is equivalent to 20 percent of the private sector's
Spain has seen an increase of 800,000 people in the past month. Spain was already struggling with a 14 percent unemployment rate, but it added to the Covid-19.
Many individuals and businesses, if not unemployment, are suffering from financial difficulties.
A million people in Britain have applied for a national credit loan, one of the government's welfare policies.
Within less than a week, Ireland has attracted 34,000 companies to apply for the government's wage subsidy program.
Experts say that Asia, which is harder to fire than the West, is still struggling with unemployment, but if the Covid-19 crisis continues, Asia will be no exception.