The disastrous data on employment make us fear that this crisis is as serious as the great depression.
Weekly jobless claims in the US have shot up another 6.6 million in the week of March 27, a disastrous data even worse than expected by analysts who anticipated 3.5 million more claims.
It should be remembered that the dator recorded in the previous week, that of March 20, was more than 3 million and was already the highest figure recorded to date.
Close Brothers analysts highlight “another record week of unemployment in the US confirming the worst fears in the market and the Fed.” Furthermore, they recognize that “the impact that the coronavirus is having on an economy led by the service sector is being especially devastating.”
His estimates after knowing this data go by anticipating a contraction of US GDP in the second quarter of up to 34%. Furthermore, they warn that this has only just begun and “unemployment figures will inevitably continue to rise”