Over 30M File for Unemployment as the Coronavirus Hammers Businesses in the US
The COVID-19 pandemic is taking a devastating toll on the US economy, and the unemployment rate is continuing to expedite. More specifically, non-essential small to mid-sized business employers are being forced to furlough and layoff their employees due to reduced working, as well as productivity efforts, and forced closed doors.
Under the CARES Act comes a new Employee Retention Tax Credit (ERTC) that will help some businesses, while the Paycheck Protection Program is available to aid small businesses only (less than 500 employees). “I compare it to a natural disaster, a terrorist attack and a financial shock all at once,” said Gregory Daco, chief U.S. economist at Oxford Economics. “We’ve never had this in history.” In fact, the unemployment rate today is the highest since the Great Depression, at over 18%*. Not only is there a steep rise in layoffs but a severe decline in the job market as companies have had to freeze or cancel their hiring growth plans.