At the start of February – early days of viral spread (COVID-19), the rate of unemployment in America is almost 3.8%. This straggling level of unemployment reached 13.0% in May, 20202. The rate was 2nd highest in the era after World War- ll. The Great Recession, a Sharp decline in the economic graph in the late 2000s – is already increasing the number of unemployment by 8.8 million from 2007-2010. During these downturn years, the rate of unemployment was highest (10.6%) by the end of January 2010.
The U.S government predicted that due to the COVID-19 outbreak –there is a sharp deterioration of labor force participation. Estimations of governments show that 9 million Americans lost their jobs as compared to 5 million jobless people in February. The rate of unemployment during COVID-19 recession (17%) is comparable to The Great Depression of the 1930s.
Unemployment, due to COVID-19 Outbreak, is more in women.
Few research shows that the rate of unemployment for women is greater (14.3%) as compared to the rate of unemployment in men (11.9%). This condition is reversed in the Great Recession where the rate of unemployed men is greater (12.3%) than the rate of unemployed women (9.4%). The fact of this contrast is, the rate of unemployment in The Great recession is due to the downturn of constructions and manufacturing companies where women are in fewer numbers than men. On the other hand, the rate of unemployed women is greater in COVID-19 Recession is due to the downturn of the hospitality and educational sectors.
The peak Rate of Unemployment of Black community is less (15.8%) as compared to the peak rate in The Great Recession (21.2%).
There is a gap between the unemployment rate of black people now and then. The reason why? Because the economic uproar that greatly affects the goods production sectors (like in The Great Recession 1930s) appears to take a greater toll of unemployment in black people.
Immigrant’s peak rate of unemployment is higher as compared to the native workers.
The peak rate of unemployment (immigrants) is elevated (15.7%) as compared to U.S born employees (12.4%). The reason is not clear but research shows that native workers are young and graduated from native colleges. As compared to the immigrant labor force that is estimated to have been unauthorized.
The peak rate of unemployment is relatively lower among the workers with higher education degrees.
The unemployment rate in May was lower amongst workers with a bachelor’s degree (7.2%), the only crowd among those observed not to experience an unemployment rate in the double digits. In divergence, 18.5% of workforces without a high school diploma were unemployed in May. In the Great Recession, the peak unemployment rates for the different sectors ranged from (5.3%) among those with a bachelor’s degree or higher education to 17.9% among those without a high school diploma.
People related to retail business sectors face more unemployment rate than people related to e-Commerce.
Due to the COVID-19 outbreak, intercity lockdown greatly upset the retail business, tourism, transport, and hospitality sectors. So the peak rate of unemployment is higher in a particular sector as compared to e-commerce.
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