Covid-19: The Coming Employment Crisis

The impact of the pandemic hitting the global economy is unprecedented. Let's look at one data point in particular, employment. One facet of the post 2008 financial crisis expansion has been a slow but steady increase in employment. Covid-19 brings an abrupt end to that.

As you can see below, estimates are that within two weeks, the US will have around ~2.25M initial jobless claims. For comparison, the prior all-time peak topped out at ~695,000 Americans two years into a recession in 1982. The speed of this crisis is breathtaking.

Policymakers are now faced with an enormous crisis; keep people healthy while also keeping people employed. Sending out an immediate $2,000 to each person is a good start.