The results of the economic impact of coronavirus are rolling in as the jobless claims are being published. An estimated 2.1 million retail jobs have been lost due to coronavirus. The U.S. Labor Department said that 1 in 10 jobs lost from coronavirus were in the retail sector.
The overall picture from coronavirus is pretty bleak. The unemployment rate has soared to 14.7 percent, exceeding even peak Great Recession levels. Prior to the economic fallout of coronavirus, unemployment was at 4.4 percent, and while economists said we were due for a recession, coronavirus has expedited both that recession and the severity of it as well.
With the unemployment rate so high, consumer spending will be down for a while, which will also spell trouble for retailers. While many states are extending unemployment benefits and increasing the amount that recipients would usually receive most people will use that money for essentials like rent, food, and utilities.
Over the last seven weeks 33.5 million people have filed for unemployment. As states are beginning to reopen and some employees can return to work ending their furloughs this will hopefully reduce the number of unemployment claims but economic recovery could be up to several years away.