The job losses in coronaviruses are much worse than anything we saw in the Great Depression: ‘Economist

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effectively lost jobs in March after a decade of gains, and the job situation will only get worse as the nation remains closed for businesses to curb deadly new coronavirus. “Data-reactid =” 16 “> The US economy actually lost jobs in March after a decade of gains, and the job situation will only get weaker as the nation remains closed for businesses stop the spread of the deadly new coronavirus.

On the move ”on Friday. “What is particularly sad about this is that once workers are separated from their employers, it is much more difficult to restart the economy. “Data-reactid =” 17 “>” I mean, it’s so heartbreaking, this data “KPMG chief economist Constance Hunter told Yahoo Finance” On The Move “on Friday. What is so particularly sad about this is that once workers are separated from their employers, it is much more difficult to restart the economy. “

She added, “We have more social safety nets in place than during the Great Depression, but it is much worse than anything we saw during the Great Depression. “

the vast majority of the United States locked up. “Data-reactid =” 19 “> The employment report – which showed more than 700,000 job losses and an unemployment rate which fell from 3.5% to 4.4% – does not start to Summarize the effects of the pandemic as it only extends until March 12. , before the vast majority of the United States was locked up.

The labor market deteriorated considerably in March.

According to Hunter, KPMG, one of the four largest accounting firms, expects at least 8 million layoffs in April and may be closer to 12 million. For the entire second quarter, it expects 25 million job cuts.

eclipsing the record before that of 695,000. “data-reactid =” 41 “> The news would come after unemployment claims hit a record 6.648 million for the week ending March 28, doubling the number the previous week and eclipsing the record before that of 695,000.

Describing the recent and expected casualties as worse than the Great Depression that began in 1929, Hunter noted: “We did not have a sudden fall from the cliff like this. “

“There will be more friction”

the US economy in a protracted and devastating slowdown in the 1930s. The Great Depression was preceded by a stock market bubble in the 1920s and a crash in 1929, followed by massive bank failures when the Americans rushed to protect their money. . The slowdown was triggered by the massive closure of businesses, at least some of which will eventually reopen. “Data-reactid =” 44 “> Admittedly, the causes of the current crash are very different from those which the American economy transformed into a prolonged and devastating slowdown in the 1930s. The Great Depression was preceded by a bubble in the 1920s and a crash in 1929, followed by massive bank failures as the Americans struggled to protect their money. The recession, meanwhile, was triggered by the massive shutdown of businesses, some of which at least will eventually reopen.

“Companies that have had to fire workers are likely to go back to many of their employees and hire them again – but of course there will be friction and sorting out, as many people will not return to the same employers,” said Hunter. . “We expect a restart, but we do not expect the restart to be as transparent as it could have been if people had been able to keep their jobs with their current employer. “

People line up while city harvest volunteers distribute food in Harlem March 28, 2020 in New York City. – With tens of thousands of New Yorkers unemployed due to the epidemic, New York food banks are facing an influx of newcomers who have never needed it before. (Photo by Kena Betancur / AFP) (Photo by KENA BETANCUR / AFP via Getty Images)

that real unemployment is around 13%, and last week the St. Louis Fed made headlines when it predicted the coronavirus pandemic could lead to an unemployment rate of 32%. To put this figure into perspective, unemployment in the United States peaked at 24.9% in 1933, when the American economy was in the grip of the Great Depression. “Data-reactid =” 66 “> In the meantime, the unemployment rate will probably go up a lot Economist Justin Wolfers estimated in the New York Times on Friday that real unemployment was around 13%, and last week the Fed de Saint-Louis made the headlines when it predicted that the coronavirus pandemic could lead to an unemployment rate of 32%. To put this in perspective, unemployment in America peaked at 24.9% in 1933, when the American economy was in the grip of the Great Depression.

told the New York Times this week that the 2008 financial crisis was a “trial period” for the current pandemic-induced slowdown. how the coronavirus crisis could unfold. Harvard economist Kenneth Rogoff told the New York Times this week that the 2008 financial crisis was a “dry period” for the current pandemic-induced slowdown.

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