How many millions of Americans lost their jobs due to coronavirus

US, WASHINGTON (ORDO NEWS) — Time to take stock of the crisis. The worst months are behind, the economies of many countries are gradually quarantining, but the consequences of the crisis have yet to be assessed. Now the first macroeconomic data for April has begun to arrive, and these data are still disappointing.

Recall that it was in April that various restrictions began to be introduced, but so far economists have only guessed how strong the negative effect was.

The labor market of the world’s largest economy – the United States – is already showing signs of the worst period in its history. The data released on the eve showed that over the past week alone, 33 million people have applied for unemployment benefits.

Well, today the most comprehensive report on the labor market will be released. Analysts expect the economy to lose 21 million jobs in April and unemployment to 16%. At the same time, experts interviewed by Bloomberg expect that retained employees even saw a pay increase. However, many independent experts are sure that there is nothing of the kind.

Meanwhile, the stock market is increasingly optimistic. After correction at the end of last week, American indices began to grow again. The problem is that this growth is largely ensured by the shares of the largest IT companies. This has allowed the high-tech Nasdaq index to go positive since the beginning of the year.

Other sectors are still, if not under pressure, then sideways. In any case, rapid growth is definitely not observed, and it will take a lot of time to recover all the losses.

Meanwhile, it is worth adding that the money printed by the Fed simply has nowhere else to go but to the financial market. Bankers and funds are simply forced to invest in financial assets. Yes, the market is now very divorced from the real economy, but this should not be misleading: the shares of companies that are not threatened with bankruptcy will still grow.


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