The U.S. labor market is going to be a blood bath by the time everything peaks, warns the Federal Reserve.
In a new analysis by the central bank, the Wuhan coronavirus economic crisis could cost 47 million jobs and raise the unemployment rate to 32 percent. Because there are 67 million jobs at risk of being laid off, the figure could be higher.
Yikes.
St. Louis Fed economist Miquel Faria-e-Castro wrote in a research paper:
“These are very large numbers by historical standards, but this is a rather unique shock that is unlike any other experienced by the U.S. economy in the last 100 years.”
James Bullard, head of the St. Louis Fed Bank, projected a 30 percent jobless rate.
On Thursday, the initial jobless claims are expected to hit 3.5 million. On Friday, the March unemployment rate is projected to top four percent.
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