The Coronavirus impact has turned from a health crisis to a financial one, as many businesses have been shut down due to the pandemic. COVID-19 is significantly affecting the economy all over the world.
The unemployment claims have gone up to nearly 10 million in the United States. Also, they have claimed for the unemployment insurance. Many Americans are coming forward to get their unemployment benefits. The rising economic disaster is adding a strain, and many Americans are still not able to file for the insurance.
The labor department on April 3, 2020, has told that the US is facing an unemployment rate at 4.4%, which has reduced 50 years of successful employment. Most of the companies are shut due to the contagious spread of the virus.
The well-developed country now has over 3,68,449 positive cases and has reported more than 10000 deaths. Out of which, only 19,581 people have been recovered.
Many retail workers lost their jobs last month. The US government had added around 12,000 jobs. The federal government has included 18,000 jobs in which most are temporary employees for 2020. The hospitality industry has reported losses of about 459,000 jobs, out of which 61,000 jobs were healthcare, and 52,000 were professional and business services.
There is a fall in the Dow Jones Industry average by 350 points on April 3, 2020. The Nasdaq and S&P 500 index also has been down by 1.5%. The US officials have warned about the COVID-19 impacts that it would get worse over time.
Disney has told that the company will begin a furlough process by April 19, in which most of their employees will lose their jobs temporarily.
Kristalina Georgieva, the Managing Director of the International Monetary Fund, also joined the WHO's press on April 3, 2020. He said that the IMF had never faced such situations in history, witnessing the world economy going down. The IMF is mainly focused on developing economies and hard-hit emerging markets worldwide.
"On one side, the WHO protects the health of the people, and the IMF protects the health of the economy of the world," Georgieva said. Both are facing equal crisis together. She claimed the crisis as the "humanity's darkest hour." The IMF has around $1 trillion of funds to give emergency financing to the countries across the world. Most of the nations have started requesting for funds.
Under Armour has announced the temporary closure, and the company has agreed to assist their employees to cover health benefits for two months. Also, Macy's and the Gap have announced some measures for their employees.
Jeff Bezos, the Amazon CEO, and founder has said that he was donating $100 million to feed America. The fund will help in restocking food banks and pantries in the economic crises of the US.
All businesses in the US are going down as the statewide closures are imposed in at least 45 states. There are notable job losses in the leisure and hospitality field. Mostly health care, social assistance, business services, retail, and construction are facing a significant loss.