Get our newsletter delivered directly to your inbox
I have already subscribed | Do not show this message again
Your email has been successfully registered.
Twelve percent of the working population might be unemployed due to COVID-19 economic impacts.
The Congressional Budget Office (CBO) forecasts that the United States might experience a 12 percent unemployment rate and a 7 percent loss of its Gross Domestic Product (GDP) by the end of this year's second quarter.
"GDP is expected to decline by more than 7 percent during the second quarter. If that happened, the decline in the annualized growth rate... would exceed 28 percent. Those declines could be much larger, however," the CBO announced in its latest economic forecast.
On March 14, the House of Representatives approved the “Families First Coronavirus Response Act” (HR 6201), which seeks to counteract a decrease in economic activity that could easily lead to a recession
This act implies authorizes disbursement of US$2 trillion, the largest fiscal stimulus package in U.S. history, which is aimed at expanding unemployment coverage, direct cash transfers to households, and funds to subsidize small and medium-sized companies.
"The unemployment rate underlying the cost estimate for HR 6201 was 12 percent in the second quarter... The analysis incorporated an expectation that the current extent of social distancing across the country would continue... for the next three months," the CBO recalled.