DecryptionIN A GRAPHIC – In one month, the economic crisis linked to the Covid-19 destroyed more jobs in the United States than growth had managed to create during the last ten years.
The economic consequences of the coronavirus crisis are vividly illustrated in the United States, where unemployment continues to beat frightening records. For the fifth week in a row, more than 3 million new requests for jobseeker registrations were recorded as a result of measures taken to stem the spread of the epidemic.
According to figures from the Department of Labor, during the week ended April 18, jobless claims exceeded 26.4 million, a figure unheard of in American history. This accumulation "erases" the 22.8 million jobs created in ten years, during the rebound following the 2009 recession.
The subprime crisis, these risky home loans whose bubble exploded in the financial markets, slowed the US economy for almost two years. This time, the crisis did not come from the financial markets but from a political decision following the pandemic.
Two main elements explain this unprecedented "wall" of unemployment: the continuation of layoffs, but also the fact that the self-employed are eligible for benefits for the first time under the federal plan to support the economy .
The unemployment rate for April, to be released on May 8, is expected to increase sharply. It could reach 25% by the summer, according to some observers, and relegate to the rank of memories the peak of the “subprime” crisis, where it had risen to the highest at 10% in October 2009. The rate unemployment rate was between 3% and 4% before the crisis.
