Dubai- Masaader News
U.S. Department of Labor has announced that 20.5 million workers have lost their jobs in April, as impact of the coronavirus-induced economic shutdown, which it has torn through the U.S. labor market, acceding to the press release.
The bleak numbers paint a “pretty dismal picture, but April may be it for job losses going forward with the country starting to reopen,” said Chris Rupkey, chief financial economist at MUFG Union Bank. “If there is a silver-lining in today’s dismal jobs report, it is in the realization that the economy cannot possibly get any worse than it is right now.”
The U.S unemployment would reach to rate skyrocketing to 14.7%.
According to the report, the April numbers represent a stark reversal for a jobs market that had been on fire only two months ago. February saw a payroll gain of 230,000 that was high for a recovery that lasted nearly 11 years. The month’s total was revised down 45,000. March’s initially reported loss of 701,000 also was pulled down further, to 870,000.
International Labour Organization said last March that, almost 25 million jobs could be lost worldwide as a result of COVID-19, however, if we see an internationally coordinated policy response, as happened in the global financial crisis of 2008/9, then the impact on global unemployment could be significantly lower.
Underemployment is also expected to increase on a large scale, as the economic consequences of the virus outbreak translate into reductions in working hours and wages. Self-employment in developing countries, which often serves to cushion the impact of changes, may not do so this time because of restrictions on the movement of people (e.g. service providers) and goods.
Falls in employment also mean large income losses for workers. The study estimates these as being between USD 860 billion and USD 3.4 trillion by the end of 2020. This will translate into falls in consumption of goods and services, in turn affecting the prospects for businesses and economies.