WHAT’S BEING CLAIMED:
- More than 3 million Americans have filed for unemployment claims last week because of business shutdowns due to the coronavirus pandemic.
- This makes it the highest number of jobless claims in a week, in America’s history.
- The claims are following the indefinite closing of businesses to help curb the spread of the virus.
The Labor Department released a report on Thursday that 3.2 American citizens have been recorded to have filed for unemployment claims in the third week of this month of March. This signifies the effects of the novel coronavirus pandemic on the United States’ economy.
The report says that this is the highest number of unemployment claims in one week in the country’s history. The increase from the week before is astronomical given that 282,000 people filed the claims.
Before this, the highest number of claims was way back in October 1982, with a total of 695,000 claims, as stated by the Labor Department.
Although the claims have reached 3 million, Chief Economist Diane Swonk of Grant Thornton told NBC News that these “are just the tip of the iceberg. Businesses cannot plan for this kind of sudden stop of cash flow. This isn’t a ‘rainy day fund’ situation.”
The unemployment claims are following the indefinite closing of businesses across the United States to prevent the spread of COVID-19.
With this, President Donald Trump is seeing April 12 for businesses to possibly reopen.
But Dr. Anothony Fauci, the country’s key expert on infectious diseases is against the president’s statement for the reason that if COVID-19 is not yet contained by that time, the plan may not be safe at all.
To slow the growth in the number of new infections, health officials are urging Americans to stay at home. Hence, epidemic experts warned the president that by rushing his decision to reopen businesses very quickly is definitely a dangerous move.