COVID-19 U.S. employment shocks likely larger than Great Depression
Tuesday, April 21, 2020 - 10:30
in Mathematics & Economics
The U.S. is likely to see a near-term 24% drop in employment, 17% percent drop in wages, and 22% drop in economic activity as a result of the COVID-19 crisis according to a new study co-authored by SFI External Professor Doyne Farmer at the University of Oxford. The study further shows that these impacts will be very unevenly distributed, with the bottom quarter of earners at risk of a 42% loss in employment and bearing a 30% share of total wage losses. In contrast, the study estimates the top quarter of earners only risk a 7% drop in employment and an 18% share of wage losses.