According to US Department of Labour, more than 6.6 million people applied for jobless claims (week ended April 4). This spike in number of jobless claims happened because of number of coronavirus cases sharply grown (around 600,000 cases). This lead to partial shutdown of US economy (as well as many other economics worldwide).
I used to be Forex trader and every month I’ve been waiting for number of jobless claims in US. This is major sign of US economic situation. Less jobless claims is better. But this month something unique happened. 95% of US citizens under some type of lockdown or quarantine. On graph available visual representation of jobless claims since 1970. I’ve never expected that numbers could be so high.
The surging joblessness is not something new to US economy but government successfully kept unemployment rate below 4%. Some economists expect that unemployment rate has hit the double digit. The Federal Bank used all financial stimulus to keep businesses afloat and eased banking regulations. The US Congress has passed $2 trillion rescue bill. US economy will rebound but everything depends on how long partial shutdown will be.
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