Culture 2 min read

Impact of the COVID-19 Pandemic on U.S. Job Market

zimmytws / Shutterstock.com

zimmytws / Shutterstock.com

According to the Labor Department's job market report, the United States lost 701, 000 jobs in March, raising the unemployment rate to 4.4 percent.

Like other parts of the economy, the coronavirus pandemic has a significant impact on the job market.

The first COVID-19 case in the U.S. was identified in Washington State on January 21. Since then, the disease has spread to over 400,000 people and killed more than 14,000.

In response to the increasing cases, states started shutting down schools and banning large gatherings. Also, businesses across the country began closing to prevent the spread of the coronavirus.

Popular brands that shut down retail stores across the country include Nike, Apple, Abercrombie & Fitch, Urban Outfitters, among others.

As you may have guessed, the economic freeze could cost millions of jobs.

According to an analysis, roughly 67 million Americans working in jobs with a high risk of layoffs. What’s more, the employment rate could eventually soar past 32 percent, says another estimate.

For now, here’s what the Labor Department‘s March report reveals about the U.S. job market.

How COVID-19 is Affecting the U.S. Job Market

The March Jobs reports revealed that the early impact of the pandemic is worse than expected. It suggests further harm on the U.S. economy ahead

According to a recent report from the Labor Department, the United States lost 701, 000 jobs in March alone. Meanwhile, the unemployment rate in the country jumped from 3.5 percent in February to 4.4 percent.

As dire as the number may seem, it doesn’t even paint the full picture.

The report only includes data through March 14. It didn’t cover the last two weeks of the month when about 10 million Americans filed for unemployment insurance

The Labor Department also pointed out that the pandemic affected data collection for the report.

According to the Bureau of Labor Statistics, the household survey response rate was ten percentage points lower than in recent months. Similarly, the establishment survey was roughly nine percentage points lower.

Non-responses make it more difficult for the BLS to get an accurate picture of the labor market,” says Bank of America economist, Joseph Song.

Read More: Coronavirus Trend Might be the Biggest in Google Search History

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