The labor market in United States has been expected to face even more pain as there has been a forecast issued by Bank of America and that looks very bleak as the initial claims for the unemployment insurance have soared to a level of 3 million as the coronavirus has disrupted the labor market in an extremely bad manner and this is going to be the biggest increase which has been recorded. As the coronavirus crisis shuts cities down and there are countless businesses which have been shut down, the unemployment had already been rising as the week which ended on 14th of March had shown the claims of jobless jump to a level of 281,000 from the week prior to that when they were 211,000.
The bank has now anticipated that the week which ends on Sunday will be reflecting a complete force of the food retail as well as other services and jobs which are laying the employees off in huge numbers. The big cities have been urging the residents to be at their homes as there are new cases which might surge.
The economist of Bank of America has said that the forecast has been compiled as there are news reports that show close to 720,000 applications which have been filed over the 19 states by Wednesday. The numbers have jumped for the initial claims and it is expected that the number is going to go deep into millions and that is going to lead to a major disruption in the economy.
There are others too who have been claiming an upward shift in the applications like Goldman Sachs has predicted 2.25 million claims.