US unemployment claims increase, service industry most affected

The United States government on March 19 released a data that showed the unemployment rate in the country has surged due to novel coronavirus outbreak. According to reports, the data showed that claims for unemployment insurance in the United States have risen rapidly in the past few weeks, particularly in the hotel and services sector. A separate report showed that the manufacturing activity in Philadelphia has collapsed due to the virus outbreak that has forced businesses to shut down. 

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According to reports, initial jobless claims in the United States jumped 70,000 to 2,81,000, the highest level since September 2017. The United States labour department said that the increase is solely due to the impact of the coronavirus outbreak that has forced businesses to shut down. The labour department said that the layoffs are largely in the hotel and food sector and also in the transporting and warehousing industry. 

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The United States government has reportedly prepared an $850 billion stimulus package to deal with the effects of coronavirus on the country's economy. The airline industry has asked for financial support from the Trump administration and has sought $50 billion in aid from the government as the sector is slowly moving towards bankruptcy due to the shut down of borders and the ongoing ban on non-essential travelling. 

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Coronavirus outbreak

The COVID-19 has claimed more than 10,000 lives across the world and has infected nearly 2,45,000 people globally since it first broke out in December 2019. China is the most affected country in the world as experts believe that the virus originated from a seafood market in Wuhan city, the epicentre of the disease, where animals were reportedly being traded illegally. Italy, Iran and Spain are the most affected countries outside mainland China, where, as of March 17 the combined death toll stands at 5,520. Italy has now surpassed China to record the most number of deaths in the world due to the virus outbreak. 

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