US unemployment rate reaches Great Depression-era level

Laya Hamilton, 23, of Atlanta, Georgia, was laid off from her bartending job at a restaurant after the Coronavirus outbreak. Pic/AF

US employers have cut a staggering 20.5 million jobs in April amid the COVID-19 pandemic, erasing a decade of job gains since the global financial crisis and pushing the unemployment rate to a record 14.7 per cent, which is the highest level since the Great Depression.

In April, the unemployment rate surged by 10.3 percentage points to 14.7 per cent, the largest over-the-month increase in the history of the series dating back to January 1948, the Bureau of Labour Statistics (BLS) said in a report.

Since mid-March, numerous US states have rolled out "stay-at-home" policies and shut down non-essential businesses in a bid to slow the spread of the virus, leading companies to cut millions of jobs in weeks.

Employment in leisure and hospitality plummeted by 7.7 million, or 47 per cent, the report showed. The manufacturing sector shed 1.3 million workers, and employment in retail trade was down 2.1 million jobs.

The education and health sector lost 2.5 million jobs. Government employment also dropped by 9,80,000 in April, according to the bureau. Hispanics and African-Americans have been hit the hardest in the job crisis, said the BLS report. President Donald Trump said that with the reopening of the economy, lost jobs will come back.

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