The infliction caused to the economies due to the coronavirus outbreak seems to have started showing in terms of unemployment. The consequences of the slowdown of the global market and economy are now visible as massive unemployment around the globe is expected to start in April. This pandemic has hit the US unlike any other crisis before. Considering other financial crises, this outbreak has resulted in many job loss and according to the forecast by economists, the upcoming days will be worst for the US.
A sharp upward movement is predicted in the number of unemployment caused due to shutdown of the retail as well as other markets. The lockdown has made the employers to layoff the employees to avoid incurring any financial damage. A forecast published by CNN estimates 500,00 to 5 Million job losses only in the month of April. The disruption will be visible from the first week of April. This would the major financial crisis after the great depression in terms of damage to the values of assets and the economy. Although the economists are still positive and expecting this crisis to end without causing forecasted damage, the growing number of cases show a different figure.
Hospitality food and beverage industry are the worst hit and layoff a large number of workers to cope up with the drastic fall in the business after the Coronavirus outbreak. Marriott International, a leading company in the global hospitality industry has announced that it will lay off thousands of its employees currently working at different places. Many other companies involved in the hospitality business are expected to follow this move to avoid the huge loss.
Sudden Spike in Unemployment claims
Amid the looming recession caused due to this pandemic, the US is expected to see an increased number of unemployment claims. According to an estimate by Goldman Sachs, around 2.25 million Americans will file the unemployment benefit claims. Almost 281,000 Americans have already filed the unemployment claims as per government records. This is a sudden spike in the number of claims for unemployment benefits in the decade. The Goldman Sachs report further predicts a huge increase in the number of such unemployment benefits filing as there is not yet treatment found to cure this disease completely. Considering the growing number of cases and resulting deaths in the US and other parts of the globe, the restaurants, airlines, sports, and other such businesses are expected to be closed until this crisis gets over. The closure of the retail market is one of the major hit sectors of the economy by unemployment.