U.S. states reopen, millions still unemployed


Reference:CGTN | Updated: 11 June 2020

As the U.S. economy tries to bounce back from COVID-19, millions are still unemployed and struggling to receive benefits. 

More than 42 million Americans have filed for unemployment benefits since the pandemic began.

At least one analysis done by the Becker Friedman Institute at the University of Chicago, predicts 42 percent of those furloughed will never get their jobs back, while 30 percent will get new jobs later in 2020.

Forbes reports, some companies are already acknowledging future layoffs. 

With millions out of work, why can receiving unemployment be so difficult?

It comes down to which state a person lives in.

The U.S. does not have a national unemployment system. 

Instead, each state and territory has its own. Some states, like Florida and Arizona, have experienced severe issues with their systems. 

Although May numbers from the U.S. Bureau of Labor Statistics (BLS) show a dip in unemployment, down to 13.3 percent, the Bureau admitted to an error in its statistics, indicating inaccurate results. 

The BLS said survey takers mistakenly counted about 4.9 million people as employed, although they were temporarily laid off. 

If the numbers were corrected, experts say May unemployment would have been 16.1 percent and 19.5 percent in April.

The BLS says it doesn't correct survey results out of fear it could look like political manipulation. 

U.S. Federal Reserve officials predict 2020 will end with unemployment at 9.3 percent and they expect it to stay high for the next couple of years. 

These new forecasts anticipate a much slower recovery than the Trump administration has previously outlined.

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