US unemployment rate approaches Great Depression

US, WASHINGTON (ORDO NEWS) — Over the past week, ending April 18, 4.4 million US citizens applied for unemployment benefits , according to a recent report by the country’s labor department. Thus, since the beginning of quarantine, the total number of applications has already reached more than 26 million units.

However, analysts emphasize that the real unemployment rate is much higher, since as of March 13, there were already 7.1 million unemployed in the United States. Consequently, the total number of job losses, taking into account the submitted applications for benefits, has already exceeded 33 million.

Thus, the unemployment rate in the US has reached 20.6% – this is the highest rate since 1934.

Two weeks later, when the US Department of Labor publishes a report on unemployment, this figure will reach 23%, said senior economist at Capital Economics Paul Ashworth , whose opinion is quoted by CNBC. It is noted that in 1933, during the Great Depression, the unemployment rate reached 24.9%.

In addition, experts say that applying for benefits sometimes takes several weeks, so the final data on unemployment in the country will be known over time.

“We know that tens of millions of Americans have lost their jobs. Even more people have suffered: they have either been reduced working hours or salaries have been reduced, ”Daniel Zhao, senior economist at Glassdoor, quoted The Wall Street Journal as saying.

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