How Job Swell Has Gone Busted With Unemployment Benefit Claims

As people move towards the unemployment benefit safety net, the US has a very tough economic balancing act on its hands. Second week of March saw a surge in the number of unionized workers from the service and hospitality industry filling in paperwork for unemployment benefits.

According to formal estimates, a record 3.28 million workers are said to have applied for unemployment benefits by the end of last week. The decade long run and claim on job growth, seems to now not hold good for the US economy.  There is a literally five time increase in the number of people running for claiming unemployment benefits, due to the sudden hit to the world economy as nations are forced to come under a physical lock-down to contain Covid-19 disease to spread any further.

Covid-19 is a disease resulting from exposure to the Corona Virus and is highly contagious.

Amongst the American states, Pennsylvania, Ohio and California are said to have reported more than 100,000 claims, leaving unemployment systems overloaded. Millions of U.S. businesses have announced layoffs or furloughs. Several state and local authorities have ordered nonessential businesses to close in response to the novel coronavirus pandemic, bringing the great American job machine to a sudden halt.  There is however, good news for some who are being picked to fill in warehousing and delivery gaps. There has been a surge in these jobs across the service and food industry across the globe.

Under Trump’s leadership and for close to 113 months, the US could add in jobs for disabled, low-wage hourly laborers, minorities, former inmates and others. The economy was reported healthy figures in terms of payroll growth by $22 million. Currently, two things are worrisome for the working class. Will they contract infection and not be able to seek a vaccine and whether they can have work to keep the lantern burning in their houses.

Undeniably, most economies are surviving through an economic stimulus right now, because there is uncertainty over how long will virus crisis last. A lot if also dependent on the federal and state unemployment insurance programs adapting quickly to fill the immense gaps building in household cash flows until the virus recedes.