A Multivariate Analysis of the Impact of the COVID-19 pandemic on unemployment in the US

This study will investigate the impact of the pandemic on COVID-19 on multiple indicators in 51 states of the US. Using secondary data from the U.S. Bureau of Labor Statistics database, A Multivariate analysis of Variance (MANOVA) was conducted to assess the differences in unemployment before, during, and after the pandemic. There are three main reasons for unemployment: structural, frictional, and cyclical. Structural unemployment is caused by a mismatch in skills or a loss of interest in available jobs due to consumer preferences and companies acquiring and adapting technology to their different departments. Frictional unemployment occurs when people look for new jobs. Cyclical unemployment occurs due to new policies in the economy (CRS, 2022). Recently, in 2020, the world suffered a pandemic that caused high unemployment worldwide. Unemployment affects the government, corporations, and individuals. When individuals and corporations do not profit, tax payments are reduced.
Corporations reduce revenues and consequently lay off employees. The effect on individuals is similar: loss of income and less acquisition. Other effects of unemployment are the increase in crimes and increases in government support through different programs.