U.S. Unemployment Hits 3.28m, Beating All Estimates as COVID-19 Crushes the Economy

U.S. Unemployment Hits 3.28m, Beating All Estimates as COVID-19 Crushes the Economy.

The U.S. has reported a dramatic surge of unemployment as of March 26 at 3.28 million, rose over 100 folds from the previous week which reported at 281,000.

The figure reported today is the highest in the American history in which the highest figure was recorded at 695,000 people in October 1982. The sudden surge was due to the contagion of coronavirus that had been infected nearly 70,000 people in the state and killed more than 1,000 people.

After the outbreak, shops were closed, museums were abandoned, offices were empty as a measure to “work from home” was implemented. However, some employees were asked by their companies to use the method “leave without pay” as the U.S.’s economy is going into a recession. And some were sacked as the company cannot bear the burden from an economic meltdown.

Yesterday, the Senate had passed the $2 trillion stimulus bill to combat the impact from the coronavirus outbreak.

The plan included giving a direct payment to all Americans up to $1,200 for individuals and $2,400 for couples, with adding $500 for every child, based on 2019 tax returns for those who filed them.

Adjusting as unemployment insurance by adding $600 per week for four months on top of what beneficiaries normally receive from states. The bill also will also create $500 billion for taxpayers to make loans, loan guarantees or investments in businesses, states and municipalities damaged by the outbreak crisis, together with providing loans to small businesses to be able to cover the employee salaries.

The roughly fiscal package will also give $25 billion in grants to airlines and $4 billion to cargo carriers to pay employee wages, salaries and benefits, and put another $25 billion and $4 billion, respectively, for loans and loan guarantees

For the health care resources, the Senate aims to put $117 billion into hospitals and veterans’ health care nationwide and other $16 billion to medical suppliers.

Another interesting plan is to suspend student loan payments through September 30 with no accrual of interest and postpone payroll tax for employers.