The COVID-19 virus has had an unprecedented impact on the U.S. economy. Within the first three weeks of the outbreak, nearly 17 million people applied for unemployment benefits. The unemployment rate is now at over 15% – much higher than during the Great Recession. Yet there are many reasons why workers are not looking for jobs. Here are some of the most common causes. Read on to learn more about the effects of this novel virus on the U.S. economy.
The COVID-19 pandemic exposed the existing social, ethnic, and gender inequities. The responses to this pandemic placed an undue burden on disadvantaged populations and widened the health inequities. During this webinar, we will discuss the impact of unemployment on mental health, and the need for symbiotic strategies between the labour and health sectors. In addition, we will explore how the current situation of the economy is affecting the mental and physical health of U.S. workers.
Unemployment in the United States increased by 14.4% during COVID-19. This was higher than the national unemployment rate during the Great Recession, which officially lasted from December 2007 to June 2009. In January 2010, the unemployment rate was at 10.6%. That was lower than today’s 13.0%, which is currently the highest in the post-World War II era. The COVID-19 outbreak shook up the economy and made it harder for Americans to find work. Despite these challenges, the U.S. has a growing economy, and the latest figures will hopefully make it easier for workers to find work.
The unemployment rate during COVID-19 was significantly higher among workers with higher levels of education. In May, workers with bachelor’s degrees experienced the lowest unemployment rate. These were also the only group to avoid double-digit unemployment. Meanwhile, the lowest rate was observed in workers without a high school degree: 18.5%. Compared to the peak unemployment rates during the Great Recession, COVID-19’s high unemployment rate was significantly higher.
In the COVID-19 downturn, unemployment rates are higher among workers with higher levels of education. Among workers with a bachelor’s degree, the unemployment rate in May was the lowest, with a rate of 18.5%. Those with a high school diploma were unemployed at the highest rate – 17.9% compared to 5.3% during the Great Recession. In other words, the rate is similar to the Great Recession in the 1930s.
COVID-19 increased the number of unemployed workers by 8.8 million in May. During the Great Recession, the unemployment rate peaked at 10.6% in January. However, the current rate is far higher. It’s not a coincidence that the COVID-19 outbreak increased the number of unemployed workers. This outbreak also increased the number of men and women with low education. During the Great Recession, the number of unemployed was higher than that of whites, blacks, and Asians.