by Michael Snyder, The Economic Collapse
If the US economy remains in shutdown mode for the next several months, we are going to witness layoffs like we have never seen before in US history. Of course what we have already witnessed is difficult to believe. Last week more than 3.2 million Americans filed initial claims for unemployment benefits, and that was more than four times higher than the previous all-time record. This week another massive surge is expected, and we will continue to see lots more layoffs for as long as this pandemic persists. It is going to be a very challenging time for the country as a whole, because we haven’t seen anything like this since the Great Depression of the 1930s.
Yes, shutting down most of the nation is saving lives, but it is also absolutely crippling our economy. According to a survey that was conducted from March 20th to March 26th by Challenger, Gray & Christmas, almost half of all US companies say that it is likely that they will be conducting layoffs at some point “in the next three months”…
Forty-nine percent of companies told Challenger, Gray & Christmas they are very or somewhat likely to conduct layoffs in the next three months, while 11% reported they have conducted permanent layoffs; another 7% have conducted temporary layoffs.
If that actually happens, can you imagine what that will do to our unemployment rate?
I know that this may sound really crazy, but at this point the St. Louis Fed is projecting that we will soon see a 32 percent unemployment rate…
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