As coronavirus keeps businesses and offices shut around the world, many workers are beginning to come in terms with unemployment. In the US, the number of people filing for unemployment benefits is rising weekly.

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.

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.

The recent surge in claims trashed all previous records since 1967, according to the Labor Department tracking data. The unemployment trust fund in many states has seen drastic depletion by the overwhelming number of out-of-job people filing.

The events of the last four weeks have depleted the economic gains of the past 11 years, sounding warning that the worst may be just ahead.

While the markets show defiance now and then, the overall performance of every sector of the US economy tells a sad tale of devastation by coronavirus. And it puts workers in a sorry state of uncertain future, even after the pandemic is over.

“As we fully know the current state of the labor market with mass waves of layoffs, the key question turns to how many of these people will be rehired when the economy starts to reopen. We can assume it will take a long time for that to happen but hopefully we’re getting closer to at least getting started,” said Peter Boockvar, chief investment officer at the Bleakley Group.

Government’s efforts to save small businesses and help as many employees as possible keep their job has been stymied by lack of funds, and it has blown the crisis into a disproportionate state. A major contributor to the escalation is the government’s decision to allow independent contractors and others who previously were not eligible to file for benefits.

The numbers jumped significantly in four weeks to 6.066 million with an increase of 2.568 million, in the past week. Though unadjusted data appears promising, economists say it’s not something to rely on given the circumstance.

The unadjusted total stood at 4.9 million, which represents a 20% plunge or over 1.2 million from the past week. According to the Labor Department, seasonal factors should have reflected about 1% gain. That means, compared to a week this time in 2019, the figures should have shown 196,364 claims. Therefore, the coronavirus pandemic has made the little gains insignificant.

Paul Ashworth, chief US economist at Capital Economics said the total claims of 22.03 million filed since social distancing took effect shows a 13.5% drop in household employment, though he expresses hope that the unemployment rate would come down, he said he expects April jobless rate to be 15%-20%.

“Nevertheless, we do still expect the unemployment rate to come down much more quickly than during a normal economic recovery, as temporary layoffs return to work once the lockdowns are lifted, so we still wouldn’t characterize this as a depression-type event,” he said.

Even though the numbers have risen beyond those of the great recession, economists believe that chances of recovery are high since it mostly depends on reopening of businesses.

Meanwhile, many more workers are expected to get laid off as the number of COVID-19 cases increase in the United States, dimming the hope of lifting the lockdowns soon. The US Small Business Administration (SBA) said it has stopped accepting applications for the two programs designed to help small businesses stay in business during crises such as this.

The SBA said on Sunday that the $349 billion Paycheck Protection Program (PPP) that is meant to keep workers on payrolls has been exhausted. And the fund for the Economic Injury Disaster Loan Program (EIDI), offering government loans and emergency grants has also been drained.

While Congress debates injecting more $250 billion to the PPP, many small businesses are laying off workers, increasing the number of filers for the unemployment benefit.

Brad Close, president of the National Federation of Independent Business, said the worst fears of the members just came true. As the congress struggle to reach a consensus on the $250 billion extra fund for small businesses.

“America’s small businesses are on the brink, trying desperately to keep their doors open and support their employees. They have been let down by lawmakers and the bureaucracy, with the smallest businesses most disadvantaged in attempting to participate in the paycheck protection program,” he said.

On Wednesday, the Federal Government of Nigeria through the office of the Ministry of Humanitarian affairs announced that the palliative it intends to give to vulnerable Nigerians are for those who have less than N5,000 in their bank accounts.

The Minister of Humanitarian Affairs, Sadiya Farouq, said this during her chat with State House correspondents, that the modalities are for the urban poor, but it’s going to be disbursed using BVN verified bank accounts.

President Buhari had, on his broadcast on Monday, promised to make cash disbursement to most vulnerable Nigerians as a palliative to cushion the effects of the coronavirus lockdown. The Minister said his instruction is that the money be given to the most vulnerable, who can be classified as those with less than N5,000 in their accounts.

“You are aware that the president in his broadcast of Monday, 13th April, directed that we expand the beneficiaries of the conditional cash transfer by one million and in this regard, we are going to focus more now on the urban poor.

“These are people who depend on the informal sector to earn their livelihood; they are daily wage earners and these are people that we are really going to focus more on as well as people living with disabilities” she said.

Farouq added that the Ministry has adopted three methods to distribute the palliative across the country. She said that apart from using the BVN, the Ministry has adopted a phone recharge ratio as a criteria of cash disbursement; and those who recharge above N100 will be unworthy to receive cash from the federal government.

“Well, we have three options. One, we are going to use the national social register that we already have. Two, we are also going to focus on the urban poor as I mentioned by using their verified BVN accounts to get them, that is, people that have an account balance of N5,000 and below.

“We are also using mobile networks to know people that top up the credit units for their phones with maybe N100 or less. These are people that we consider to be poor and vulnerable. So, these are the three options that we are exploring and I am sure that by the time we get this data, we will be able to give this intervention,” she said

The Minister also explained that what is available for now will not be enough to go round, and only 25% of the total population will be covered.

“Let me also say that we have a standard. Twenty five percent of the total population is what we will take out. It cannot go round everywhere, but we are starting from somewhere. Twenty five percent of let’s say the location Lagos State, for example, is what is going to benefit from this intervention that we are doing. Going forward, we might expand it but this is what is obtainable for now,” she said.

Following this announcement, many have been wondering why N100 recharge and N5,000 account balance will be used as a standard.

Although in a country where the living standard of many falls below $2 per day, it is expected that the majority of the populace will fall in the category described by the government. But at the same time, it doesn’t rule out the fact that those who live above the described standard are also poor and need help at this time.

Many have faulted the standard of distribution adopted by the Nigerian government, saying it will hurt the majority of the people who need the palliatives. The argument is based on how long N5,000 ($13) can take an individual let alone a family, especially in the urban places in the country.

Given the value of Nigerian money, those who have N5,000 in their bank account are not different from those who don’t have. They are all considered so poor since the money can’t afford them life’s basic needs. And in a time like this, when the cost of living has increased following the lockdown of businesses, the money becomes even more meager.

On the other hand, it is believed that many who use the N100 call card top up may have limited need for calls, and those who top up with more than N100 may be doing so out of necessity not because they have enough to spare. It is also believed that anyone could receive N5,000 or more than N100 call cards as a gift from anyone.

A concerned Nigerian said at the breaking of the news that the government is going to use N100 recharge ratio as basis for the disbursement of cash: “What is paining me most is that my brother that has never given me money just sent me N200 airtime. I do not know who asked him to send it; now see what he has caused.”

As many look forward to the government to survive the lockdown, it is expected that everyone is taken care of. But in an apparent situation of insufficiency, the government has been urged to adopt methods of palliative distribution that will not cheat people out.

“In a country where the minimum wage is officially N30k, to deny a citizen  5k because he has 5k under lockdown with no end in sight is illogical and irrational,” said former senator Shehu Sani.

The first financial results of first-quarter earnings season is out. Aside from the earnings declaration, the company’s performance tells the story of the of what the world is going through and how companies can thrive despite the pandemic. See highlights below:

Negative impact of the pandemic: 52% decline in revenue from contracts with customers

“Revenue from contracts with customers reduced by 52% year-on-year on the back of the drop in retainership fee during the first quarter coupled with a significant reduction in fee from corporate actions as a result of the postponement of clients’ AGMs and dividend payment in response to the spread of the novel coronavirus in Nigeria”

The Company’s response: 900% growth in revenue from digital consultancy

“The company was however able to increase its revenue from digital consultancy by more than 900%, thereby emphasizing the positive result from the company’s diversification strategy into digital technology”

Financial Highlights:

Income Statement:

• Revenue from contracts with customers: N0.13 Billion, compared to N0.27Billion in Q1 2019 (52% YoY Decline);
• Interest Income: N0.61 Billion, compared to N0.60 Billion in Q1 2019 (3% YoY Increase);
• Gross Earnings: N0.74 Billion, compared to N0.87 Billion in Q1 2019 (14% YoY Decline);
• Profit Before Tax: N0.41 Billion, compared to N0.45 Billion in Q1 2019 (9% YoY Decline);
• Profit After Tax: N0.34 Billion, compared to N0.38 Billion in Q1 2019 (10% YoY Decline);
• Earnings Per Share: 17 Kobo.

Balance Sheet:

• Total Assets: N18.09 Billion, compared to N18.65Billion as at FY 2019 (3% YTD Decline);
• Total Liabilities: N9.52 Billion, compared to N10.37 Billion as at FY 2019 (8% YTD Decline);
• Shareholders’ Fund stood at N8.57 Billion, surging by 3% YoY from N8.28 Billion as at FY 2019.

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