. The U.S. Federal Reserve estimated that 47 million people might lose their jobs in the second quarter of 2020, translating to a 32.1% unemployment rate. That would far overshoot the peak unemployment rate of the Great Recession (10% in October 2009, according to the Bureau of Labor Statistics) and even of the Great Depression (24.9% in 1933).Despite differences between this economic crisis and previous recessions, psychological research can provide some insight into the behavioral and mental health impacts of financial loss. Key findings include:
The coronavirus crisis, paradoxically, may be an opportunity to find new sources of meaning. Psychological research on past financial disasters may offer guidance on how people will respond to the sudden economic calamity caused by the coronavirus pandemic.
The COVID-19 crisis has shuttered businesses and led to massive numbers of layoffs nearly overnight. As of April 2, Americans filed a record-breaking 6.6 million unemployment claims in one week, according to the Department of Labor (PDF, 743KB)