Trump performed one magic: he got Saudi Arabia and Russia on the same table to reduce oil production volume, and then went ahead to promise that the United States of America will reduce its production volume! Read deeper, that is a zen-like strategy. Why? Mr. Trump knew that Covid-19 had reduced the level of production in the American mass-small-scale, shale-mixed oil production volume. Technically, the production volume that Trump promised was not necessary because of the Covid-19 impact in the U.S. energy sector. But with the promise for America to also reduce volume, Saudi and Russia agreed! Oil picked up, marginally; he celebrated.
But one number today shows that Trump needs a bigger magic: “Another 5.2 million workers filed for their first week of unemployment benefits last week, bringing the total number of Americans who have filed initial jobless claims to over 22 million”. That number is tracking the coronavirus pandemic period of 2020!
The month of April has seen a rise in layoffs and consequently unemployment claims. About 13.5% of American workforce has been impacted and more are expected to be laid off in the coming weeks.
“As shutdowns continue, job losses will likely extend into other areas of the labor market, such as business and professional services where firms may begin to see lower revenues from a second order pull back in demand,” said Robard Williams, a senior vice president for Moody’s Investors Service noted.
The layoffs started with service jobs, then workers at restaurants, hotels and retailers felt the hit.
Now the pandemic appears set to touch white collar jobs among others it will likely hit if it doesn’t slow down in the next few weeks.
Making that 22 million to disappear is the magic before Mr. Trump right now.