Economist: Expanded unemployment rate could go up to 50%

Schussler issued the warning during a press briefing with the Institute for Race Relations (IRR) on Tuesday.

 

Schussler says cashiers, security guards and hotel workers are among those who will bear the brunt of the dire economic circumstances.

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“This coronavirus will have a huge impact on inequality, the blue-collar workers are more likely to lose their jobs.

 

“The white-collar workers not so much. For every 9 or ten blue-collar workers, we may lose 1 or 1 and a half white-collar workers.”

Schussler, who likened the current economic crisis to the recession of a decade ago, said close to 3 million people may lose their jobs.

 

“If you look the great recession of 2008/2009 unemployment increased with nearly 1.8 million. The number of jobs we lost was about 8.1% of all jobs.

 

“If we did it the same we would lose 1.33 million jobs, because we now have 16 million jobs.

 

“The unemployment number could increase to about 2.7 million, increases could likely be due to the fact that more people are looking for jobs,” he added.

 

The country’s current unemployment rate sits at 29.1% while the expanded unemployment rate is 38.2%.

 

Schussler warned that the expanded rate is likely to increase even further.

 

“I think the expanded unemployment rate will go to about 48% from the current 38.2%, with 50% a clear possibility.”