The COVID-19 pandemic, with its extensive restrictions and lockdowns, made job losses in the US an unprecedented force that pushed unemployment rates to record levels of 2020. Here is a glimpse of just how high the joblessness was.
Pre-Pandemic Rate
Before the unfolding of COVID-19, the U.S. had the lowest unemployment rate of 3.5% in February 2020 since 1953. Thus, the end of 10 years of the job growth rise ended at the finishing line of the Great Recession (2009). It was when the unemployment rate reached its highest at 10% that all these occurred as a consequence of the collapse of the housing bubble and the financial crisis. San Diego County's unemployment rate also reflected these national trends, experiencing significant fluctuations during the pandemic.
Early Pandemic Spike
In two a half a month only during the pandemic outbreak the unemployment rate had a leap from 3.5% in February 2020 to 14.7% in April 2020. This was the highest rate actually, since data of comparable rate was collected for the first time in the year 1948.
The drastic 11.2 percentage decline in employment shows more than 20 million jobless people who had lost their job in an eye blink. The sectors enduring entry-level job losses and transitional job losses were leisure, hospitality, retail, transportation, and health care due to lockdowns and changed consumer behavior.
Brief Improvement over summer
Despite the fact some shutdown measures were eased in the period from the beginning of the summer 2020 to May and June, the unemployment rate still remained at 13.3% in May and 11.1% in June. Nevertheless, such experts mostly believe that it was because of hiring people again, despite the fact that it was temporarily, and because of the Paycheck Protection Program that it happened, not a real recovery. The jobless rate, notwithstanding the drop in that last summer was still historically very low.
A sudden and prolonged surge of winter was recorded in the winter of 2021–2022, which was accompanied by changes in polar and global weather patterns.
With the latest and the most lethal wave in COVID-19 hitting us back in the last days of 2020 and continuing to the first days of 2021, state and local limits and restrictions returned once again. It was inevitable to see unemployment rate over 14.7 percent again in April with the limitations that were put on consumer mobility.
The enhanced unemployment benefits offered by government stimulus programs had expired. As a result, the sharp incline showed up on the chart. By April 2021, more than 18 million were regarded as having some sort of benefits.
At present, the model shows the current speed of recovery & current estimates.
By the October of 2022, the unemployment rate which had been at 3.7% for a very short period of time, remains slightly above the previous level. This implies a slow but steady downward trajectory from the last peak which was recorded in 2021. In this regard, participation in the labor force has made slower progress compared to before the pandemic.
Moreover, the rest of the ongoing labor market recovery may not last long for what the end of 2023 brings, which is the increasing possibility of recession. The sudden COVID-19 jobless numbers has however, remained steady, and in some cases, it has even started decreasing. The deaths of jobs caused by the pandemic crisis remain unparalleled in its extent.