According to an analysis by Columbia University economics professor, homelessness will see a huge surge of 40% to 45% by the end of the year if the deadly coronavirus pandemic continues to trigger unemployment levels as high as predicted. According to the international media reports, it means 250,000 more people in the US will be without homes as compared to the previous year bringing the total number of those experiencing homelessness to above 800000. Brendan O'Flaherty who conducted the study reportedly said in a study that it is unprecedented. He added that its quite strange for an increase of 10% of unemployment in a month.
US economy has plumetted as the country is in its nationwide lockdown to curb the spread of coronavirus disease, the unemployment rate soared to 14.7% in April, its highest record since the Bureau of Labor Statistics started tracking the monthly rate in 1948. As per reports, the predictions of unemployment for the month of May is also higher. O'Flaherty's report published by the nonprofit Community Solutions, reportedly indicates that the increase in homelessness will cause increase in unemployment. Accessing the data from 2007 to 2009, the model reportedly found that for every 1% increase in the unemployment rate, homelessness per 10,000 people increased by 0.65. According to the reports, O'Flaherty predicted that the unemployment rate could reach 16% between July and September based on the number of people experiencing homelessness on the Annual Homeless Assessment Report to Congress.
Meanwhile, millions of US workers filed for unemployment benefits last week as COVID-19 pandemic continues to impact the number of initial claims and insured unemployment. The latest report published by the Labor Department on April 30 indicated that the layoffs have spread to other industries that remained comparatively shielded from COVID-19 crisis. Last week's claims have taken the overall numbers in the past six weeks to over staggering 30 million.
The department said that the advance figure for seasonally adjusted initial claims for the week ending April 25 stood at 3,839,000. While the government tried to highlight that it is a decrease of 603,000 from the previous week's revised level, the numbers are still quite high as the United States continues to struggle to contain the virus.