Many sectors are reeling from the perils thrown by the Covid19 pandemic as they stare into the abyss of the impending recession, and the employment industry, which is the medium through which an individual enters the next crucial phase of career building, has suffered a grave blow.
The spread of Coronavirus has caused much economic damage that the prospects of job seekers are already shattered. As the United States takes steps to combat the COVID-19 pandemic and flattening the curve, physical distancing measures are the first line of defense—and they have profoundly altered the rhythms of everyday life. Countless neighborhood businesses have been shuttered, trips to the grocery store have to be carefully planned, and many parents work remotely from home with their kids in the background.
American workers are already feeling the pain. Initial unemployment claims for the week ending March 21 soared to 3,307,000, nearly 15 times higher than the 211,000 claims filed just two weeks before and shattering the previous high of 692,000, reached in 1982. Just a week later, the number for the week ending March 28 more than doubled again, to 6,648,000 (Exhibit 1). Our own analysis finds that the first phase of the battle to contain COVID-19 could leave 42 million to 54 million net jobs vulnerable to reductions in hours or pay, temporary furloughs, or permanent layoffs. Many Americans are simply unable to go to work for an uncertain period of time.
