Unemployment surge in US due to Covid-19 pandemic is unique, according to leading macroeconomic influencers

GlobalData Thematic Research 4 June 2020 (Last Updated June 4th, 2020 07:16)

Unemployment surge in US due to Covid-19 pandemic is unique, according to leading macroeconomic influencers

The US has witnessed unprecedented rates of unemployment due to the Covid-19 pandemic.  The unemployment rate in the US is expected to touch 20%, similar to the rates during the Great Depression. Experts, however, note that the unemployment rate may be reaching its peak before declining in the second half of the year.

Paul Krugman

Paul Krugman, Nobel laureate and author, shared the latest unemployment statistics from Eurostat, which estimates that the unemployment rate in the Euro zone was 7.3% in April 2020 and in the EU it was 6.6%.

Krugman noted the unemployment rate in the US is unique being very high compared to other regions at 14.7% in April 2020, according to Bureau of Labour Statistics.

Konstantina Beleli

Konstantina Beleli, an economist and journalist, shared an article on how the Covid-19 pandemic is rapidly changing the shape of global geopolitics. The pandemic has caused the competition between the US and China to intensify as the latter tries to fill in a gap left by strong leadership.

As resources are diverted towards fighting the virus, the readiness of the US military forces is being questioned. In countries such as Russia, the pandemic is exposing the inherent weaknesses such as declining living standards and a weak currency. Further, the pandemic is worsening the economies of developing countries

Ian Bremmer

Ian Bremmer, a political scientist and president of Eurasia Group, shared an article how the Covid-19 pandemic is impacting the same set of people who are protesting against the killing of George Floyd, an unarmed black man, in the US.

The article noted that the pandemic has disproportionately impacted the black and Latin American community in the US, who are now protesting against police brutality and racial injustice. Bremmer noted these protests will have local, national and global implications.

Trinh Nguyen

Trinh Nguyen, senior economist for Emerging Asia, tweeted an article on the impact of the Covid-19 pandemic and the way forward. The article contains views from prominent economists who note that the pandemic has caused an economic downturn that has shocked people. In addition to economic upheaval, the pandemic has broken international trade and finance.

The article also noted that the recovery in some economies is on track but may be slower than anticipated. The pandemic is expected to impact developing nations and the Latin American region, which is expected to contract by 6.3% between 2020 and 2022 in a modest scenario.