Jobless Rate Surges to 17.4 Percent amid Coronavirus layoffs

Jobless Rate Surges to 17.4 Percent amid Coronavirus layoffs

The U.S. unemployment rate touched 14.7% in April as majority of states remained under lockdown to stop the spread of novel coronavirus. Compared to 3.5% jobless rate in February, 14.7 in April will have a major impact on the U.S. economy in 2020. White House economic adviser Kevin Hassett estimated that jobless rate could rise to 20 percent in May, marking the biggest trouble in jobs market since World War II. In November 1982, the jobless rate had hit 10.8%.

After seven weeks of lockdown, California has allowed many business segments to operate. California has the highest number of unemployed at the moment, well above 20%. The governor Gavin Newsom said that nearly 70 percent of the economy will be running after the recently announced changes. California has issued strict conditions for operating businesses to contain further spread of coronavirus infections.

President Trump said that these jobs will be back soon and termed job losses as temporary phenomenon. While some of the jobs have been temporarily cut, we could also see some permanent job losses due to pandemic and its economic trouble for some businesses already operating in weak economic condition. Public health experts warn that reopening prematurely, without vastly expanded virus testing and other safeguards, risks fueling renewed outbreaks.

Electric car manufacturer Tesla Motors plans to restart production at its facility in Alameda County but the local regulations supersede those announced by Governor Newsom. Tesla might need some more time to start manufacturing cars as the local county relaxes the lockdown conditions.