Another 3.2 million Americans applied for unemployment benefits

Weekly indicators are slightly decreasing, but remain record high.

The rate of unemployment growth in the United States decreased slightly last week: 3.2 million people applied for benefits.

According to the Department of labor, a total of 33.5 million Americans – about one-fifth of the total job force-were out of work during the coronavirus pandemic.

Perhaps the peak of applications for benefits came at the end of March when 6.9 million people applied for the week.

Since then, weekly figures have consistently decreased, but remain the record since the great depression of the 1930s and exceed the losses of the great recession of 2008.

On Friday, the government will provide data on the unemployment rate in April. The White House forecasts that it could reach 20 percent. This level has never been seen in the country in all 72 years of statistics. According to data released on Wednesday, the number of jobs in the United States in late May and early April fell by 20.2 million.

However, business activity in the country is beginning to recover gradually: the governors of 43 of the 50 states allowed some sectors to resume work.

Some factories will open later in May, although it is unclear how a safe distance will be provided for workers.

Last week, the government reported that the country’s GDP shrank by 4.8 percent in the first quarter, and an even more significant decline may follow in the second quarter.

Credit Suisse forecasts that the economy will contract by 33.5 percent, while Goldman Sachs predicts a 34 percent decline in GDP and unemployment at 15 percent. At the same time, Goldman believes that the economy will grow by 19 percent in the third quarter.

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