- Oxford Economics economist Gregg Deko believes the US economy will decline by 0.4 percent in the first quarter of the year and 12 percent in the second quarter.
- Unemployment has also been a problem in Europe, as well as the US.
- Lockdowns are considered necessary to maintain social distancing to control the disease.
Unemployment continues to worsen worldwide due to coronavirus. According to the US Department of Labor, in the United States alone, 6.6 million Americans applied for assistance during the end of March. This figure is twice the number of applicants in the previous week. It is estimated that a total of 10 million Americans applied for unemployment assistance in the second two weeks of March.
In the Netherlands, the Dutch bank’s chief economist has said that the unemployment figures are still likely to rise. According to him, just before the government created a program for the unemployed, some companies started laying off employees, which has led to this situation. Oxford Economics economist Gregg Deko believes the US economy will decline by 0.4 percent in the first quarter of the year and 12 percent in the second quarter.
Unemployment has also been a problem in Europe, as well as the US, which has led many to take advantage of government schemes. The unemployment rate in the United States has increased in one week, due to the financial problems created in previous years. Like the US and the UK, France has four million workers unemployed, which accounts for about a fifth of France’s private sector companies. These people have also applied to the French government’s scheme for unemployment benefits.
Similarly, in Spain, where the Coronavirus outbreak ranks third in the total number of cases reported in the world, unemployment remains a problem. Spain has lost 8 million jobs in the last month. Temporary contract workers were particularly hard hit. In the UK, one million people have applied to the Universal Credit State Benefit Scheme, while 34,000 companies in Ireland have applied to avail the Government Wage Subsidy Scheme.
This unemployment problem arises mainly because governments have implemented lockdowns to overcome the movement of people to fight the Coronavirus. Lockdowns have had a profound impact on the business world, as well as in the international trade and financial markets. However, at present, the world has no special treatment except lockdown, as no vaccine or drug has been discovered so far.
US President Donald Trump said last month that there was no need to lockdown because of the Coronavirus, but 240,000 cases were reported in the United States the following week. Then, Trump introduced a guideline for social distancing, which will take effect until at least May.
The US government announced a multi-trillion dollar package so that it can cope with economic problems. California has 878,727 unemployed, while Pennsylvania has 405,880, and 366,403 people are unemployed in New York.
In Europe and other countries, including the United States, the problem of unemployment has taken a serious turn. So many people have never been unemployed in a previous global recession or another global problem. In just one month, millions of people have become unemployed because of the coronavirus. Lockdowns are considered necessary to maintain social distancing to control the disease.
However, the innovative measures that South Korea took, through thermal scanning, stand in contrast. The coronavirus is detected and a person is quarantined if found positive. South Korea implemented this method strictly so that the war against the Coronavirus could be won.