Worse Than the Great Depression: US Unemployment Projected to Hit 32%
Federal Reserve Bank of St. Louis estimates one-third of Americans will soon be jobless
A short and succinct article published by the Federal Reserve Bank of St. Louis predicts that the unemployment rate will reach 32%, making the current economic crisis basically the most destructive force in modern American history.
The highest rate of US unemployment was 24.9% in 1933, during the Great Depression.
The US has already seen nearly 10 million unemployment claims since #StayAtHome suicide began last month.
As the article states, what we are witnessing is a “unique shock that is unlike any other experienced by the US economy in the last 100 years.”
Civilian labor force in February 2020 = 164.5 million (BLS via FRED)
Unemployment rate in February 2020 = 3.5% (BLS via FRED)
Unemployed persons in February 2020 = 5.76 million (#1 * #2)
Workers in occupations with high risk of layoff = 66.8 million (Gascon blog post)
Workers in high contact-intensive occupations = 27.3 million (Famiglietti/Leibovici/Santacreu blog post)
Estimated layoffs in second quarter 2020 = 47.05 million (Average of #4 and #5)
Unemployed persons in second quarter 2020 = 52.81 million (#3 + #6)
Unemployment rate in second quarter 2020 = 32.1% (#7 / #1)