Home Society Economists expect millions of new aid applications

Economists expect millions of new aid applications

The number of new claims for unemployment benefits in the United States will continue to make millions in this week as a result of the corona crisis. In general, economists surveyed by Bloomberg expect 5 million Americans to file an aid application.

The expectation is below the record of aid applications announced by the US Department of Labor on Thursday. In the previous week, an unparalleled number of 6.6 million Americans turned to the government for benefits. Still, 5 million applications would be the second highest number ever measured since the government keeps records of this data.

With 15 million aid applications in three weeks, the world’s largest economy is likely to head for 10 percent unemployment in April. In March, unemployment rose by almost one percentage point to 4.4 percent.

In Europe, unemployment can rise up to 20 percent, say economists at Deutsche Bank. These are levels that were last measured during the greatest economic depression of the twentieth century (in the 1930s). There are indications that it is going that way. The number of new claims for benefits in the United Kingdom and Spain recently showed explosive growth, just like in the US.

About the author: Rick Culpepper

Rick Culpepper is of those journalists who dig the topic to the very bottom. He is often late with the delivery of the piece, but always does it perfectly. In his spare time, he collects data for one of the most high-profile investigations of corruption in the EU.

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