According to the Department of Labor, 3.3 million Americans have – about the population of Utah – applied for unemployment insurance since last week. Huge does not even begin to grasp the extent of the mass loss of jobs, and yet there is every reason to believe that the reality is worse.
To begin with, entire economic sectors rely heavily on contract work. This appeals to almost everyone involved in the gig economy, from Airbnb hosts who stare for months without a booking to underemployed Uber drivers who have difficulty finding tariffs, but also to a large extent in trucking and Entertainment areas to name a few. As Heidi Shierholz, director of politics at the Economic Policy Institute, told Gizmodo, the sensational number of DoL – the largest single week number ever recorded – includes "no contractors because it doesn't entitle" to unemployment receive.
Whatever it is worth, Secretary of Labor Eugene Scalia wrote in a statement that “this sharp rise in unemployment claims was not unexpected and is a result of American recognition in all countries of the country where we chose Activities had to be temporarily suspended to defeat the corona virus. “However, understanding why the numbers are skyrocketing is little protection against the damage to the economy.
It is possible that other mitigating circumstances can artificially empty unemployment claims. The decision of companies like Marriott, Hyatt and Hilton to lay off tens of thousands of workers instead of laying them off occurs to me. "Vacation workers are technically eligible, but there is confusion," Shierholz wrote.
With US $ 2 trillion flowing through Congress Passports to spend today, both vacationing employees and contractors are unemployed. (And the number of entitlements will increase to show more precisely how many Americans are currently unemployed.) Shierholz wrote: "I think today's numbers are at the tip of the iceberg" and alludes to the 14 million jobs an] expected to be lost by summer.
It's also about the demands that a 1000 percent increase in demands on existing systems, with workers in New York, the state most affected by covid-19, reporting that online systems continue to crash so some people are unable to submit unemployment benefits that they would otherwise have. "I don't know how many system overload problems have. But I would encourage people to keep trying!" Shierholz wrote. "This is an unprecedented increase in the number of people who need [unemployment insurance] so there will be glitches , sometimes long. "
Despite the debate about the current aid package,  Politico reports that this money" may not be "sufficient to keep government unemployment reserves afloat, which never came from the 2007-2009 recession have recovered. "While the Federal Reserve Chairman refused to put it so sharply, Matthew Luzzetti, chief economist at Deutsche Bank in the United States, was frequently cited today as and said :" Die This morning's data leaves no doubt that the economy is currently in recession. ”