Coronavirus Impact On US Economy: Unemployment Rate Likely To Get Worse, Treasury Secretary Says

Treasury Secretary Steven Mnuchin said Sunday that national unemployment is likely to get worse, as the coronavirus continues to negatively impact the U.S. economy. A report on Friday revealed that U.S. unemployment hit 14.7% in April, the highest since the Great Depression in the 1930’s, with 20.5 million jobs being lost during the month.

“The reported numbers are probably going to get worse before they get better,” Mnuchin told Chris Wallace on “Fox News Sunday.” He said the administration is “focused on rebuilding the economy” and claimed 2021 could be a “great” year.

Larry Kudlow, the Director of the United States National Economic Council, tried to put a positive spin on last month’s job numbers, although he claimed there would be more “difficult” economic numbers in May.

"Inside the numbers is a glimmer of hope," Kudlow said Sunday on the ABC News program "This Week." "Eighty percent of it was furloughs and temporary layoffs. That, by the way, doesn't assure that you will go back to a job, but it says strongly that the cord between the worker and the business is still intact. I think, hopefully, that has something to do with the $3 trillion of assistance, including the payroll protection plan."

In late March, the $2.2 trillion CARES Act stimulus package was passed, with the legislation boosting unemployment insurance and offering financial aid to small businesses and companies affected by the virus. In April, Congress passed another $484 billion in aid to small businesses and hospitals.

At the same time, Kudlow said the reopening process may take time to have a positive impact on the U.S. economy.

"I don't want to sugarcoat it because I think the numbers for May are going to be also very difficult," he continued. "It's going to take a while for the reopening to have an impact."

The vast majority of states have implemented lockdown measures to prevent the spread of the coronavirus, shutting down non-essential businesses. Although these measures protect public health, they have a major negative impact on the economy.

Financial services company Goldman Sachs claimed in March that the U.S. economy could plummet 34% in the second quarter due to the impact of the pandemic. As of Sunday at 6:15 p.m., the U.S. has 1,327,720 coronavirus cases and 79,495 deaths.