Job market and shadow doomsday from COVID-19

Apr 04, 2020

An global unemployment could be the most devastating aftertrouble of COVID-19 pandemia. Half hands on the Earth perhaps lost working places if crisis will extend for end of 2020.


To mid of March 2020  US’s economy lost more than 700,000 jobs and 10 million people applying for unemployment benefits. If the social distancing practice will be extended so as to expire on Autumn 2020, those million people lost their working places. It's history making if it happens because service sector of the US’s economy is now the dominate sector. But the service sector is the most harmed by COVID-19.

On 2017 service sector provided about 77% GDP of the USA. Only in education and health services engaged about 36 millions workers compared 750,000 in mining and oil extraction, for example. According Statista about 19.6 millions American workers were employed in wholesale and retail in 2019. Three-in-ten jobs are the self-employed or hired by self-employed. Also U.S. union membership rate has fallen since 1980s.

As a result millions of workers vulnerable to inactive status caused by COVID-19. The unemployment for this people is more  significant hazard to life then the risk of death from coronavirus.

Importantly to understand that stimulus like in the 2008-2009 financial crisis  aren’t effective in current condition. A huge part of the economy is stooped and continuously generate of jobless.

What the USA can do with millions of unemployed? We have one historical example. The United States home front during World War II had provided almost 100% employments. The State is being able to realize huge projects with such huge resources.