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In the United States, because of the impact of the epidemic on the economy and employment, more and more people need to support their lives through government relief. A total of 922,000 workers filed initial claims for state benefits during the final week of 2020. The United States also used two methods to restore economic development. One is Pandemic Unemployment Assistance; the other is Pandemic Emergency Unemployment Compensation.

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Key economic concept:                              

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Key economic concept:                              

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Economic well-being has been affected by the economic depression due to the covid pandemic in the United States in 2020.  As a result, many people have lost their sources of income, their living standards have declined, social security is poor and the crime rate has increased.

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Many states in the United States have adopted lockdown and curfew policies. Many part-time workers are fired, and the companies no longer recruit new employees.
“Right now, employers are still cautious related to their work force strategy,” said Amy Glaser, senior vice president at the staffing firm Adecco USA.

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The unemployment in US is related to the cyclical trends in the industry or the business. A  fall in aggregate demand from AD1 to AD2 means  people tend to spend less. This also cause a fall in the real output from Y1 to Y2, means the firms will use less labour force to produce the output so their demand for labour force decreases.  The new equilibrium is at Y2 and P2.  In the United States, people’s demand for market commodities has decreased, resulting in a decrease in producers’ demand for labor force, a decrease in jobs, and an increase in unemployment.

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Structural unemployment occurs as a result of the results of the changing structure of the economy in US. Under the influence of the epidemic and the decline in the stock market, American consumers no longer dare to buy goods easily. They are worried about the devaluation of market goods and lack of resources.
The economy was operating at W1 and Q1, when there is structural unemployment, firms demand for workers will decrease, the demand curve shift from D1 to D2, the average wage rate decreases from W1 to W2 and the quantity of workers who are both willing and able to work decreases from Q1 to Q2

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Why this occur
When there was coronavirus pandemic in the country. The country is facing cyclical unemployment. Usually, the people who are considered as unemployed would get the unemployment benefits, but in this case, the the number of people who claims the unemployment benefit increases, those people who are in the hidden unemployment also gets the unemployment benefits. The new number of claims of unemployment benefits is 787000
Interventionist policies:
Governments give subsidies to firms to provide training for their workers
If jobs exist in other parts of the country, a government might provide subsidies or
cut tax(eg. Income tax) to encourage people to move to those areas. This
enhance their geographical mobility
Government can also support apprenticeship programmes.
Job centre providing information about job vacancies, training opportunities and
interview-training can help unemployed people access available jobs.

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Policies by government of cyclical unemployment 

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Policies by government of cyclical unemployment 

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Demand-side policy. Since the problem is insufficient aggregate demand, the government can use expansionary fiscal policy or expansionary monetary policies by increasing AD itself through increased government spend or it could lower direct and indirect taxes to indirectly increase consumption by households and investment by firms. The central bank could use monetary policy by decreasing interest rates or increasing the money supply.

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The $900 billion would help the economy greatly. But it will not fundamentally solve the problem. It needs to solve the life impact brought by COVID-19, so as to restore economic development, rationally allocate social resources and strictly control epidemic situation, therefore can make the unemployment rate will decrease . it will take a long time