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The number of US unemployment claims has hit 33.3 million since mid-March amid coronavirus lockdown, about 20% of the US workforce.

A further 3.2 million Americans sought unemployment benefits last week as the economic toll from the coronavirus pandemic continued to mount.

The number of new claims reported each week by the Department of Labor has subsided since hitting a peak of 6.9 million in March.

However, they remain extraordinarily high.

The number of Americans collecting benefits has continued to rise, despite recent moves to start re-opening in some parts of the country.

Photo Getty Images

Companies such as Lyft, Uber and Airbnb are amongst the companies that have announced cuts in recent weeks, as shutdowns halted significant amounts of travel.

The impact has been felt across the economy, affecting medical practices, restaurants and administrative workers among many others.

Economists say the monthly unemployment rate for April, which will be released on May 8, is likely to reach 15% or higher.

Just two months ago, the unemployment rate was at 3.5%, a 50-year low.

Since the coronavirus has taken hold in the US, the country has suffered its worst growth numbers in a decade, the worst retail sales report on record and declines in business activity not seen since the 2008 financial crisis.

Meanwhile, weeks of elevated unemployment claims have far surpassed the prior record of 700,000.

Coronavirus: More than 6.6 Million Americans File for Unemployment Last Week
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Food pantries have seen spikes in demand, and homeowners and renters have delayed monthly payments.

The National Multifamily Housing Council – an industry group for apartment owners – reported last month that nearly a third of renters did not make their full payment by the first of the month.

Economists are hoping the pain will ease as businesses gradually restart.

Retailers such as Gap have already announced plans for re-opening some stores. Others, including J Crew and department store Neiman Marcus, have been pushed into bankruptcy.

Moody’s Investors Service has predicted that the US unemployment rate could fall back to 7% by the end of the year, but that forecast depends on the virus. The longer the shutdown persists, the harder it will be for the economy to rebound.

More than 6.6 million Americans filed jobless claims in the week ending April 4, the Department of Labor said.

The number of people seeking unemployment benefits has surged for a third week as the economic toll tied to the coronavirus pandemic intensifies.

To shore up the economy, the Fed said it would unleash an additional $2.3 trillion in lending.

The deepening economic crisis comes as the number of Covid-19 cases in the US soars to more than 430,000.

Over the last three weeks, more than 16 million people have made unemployment claims, as restrictions on activity to help contain the virus force most businesses to close and put about 95% of Americans on some form of lockdown.

Labor Secretary Eugene Scalia said: “Today’s report continues to reflect the personal sacrifice being made by America’s workers and their families to slow the spread of the coronavirus.”

The surging unemployment rate is a stark reversal for the world’s biggest economy where the unemployment rate had been hovering around 3.5%. Economists now expect that rate has hit the double digits.

Photo Getty Images

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The crisis has prompted dramatic government relief efforts.

The Fed programs on April 9, which include loans to local governments, are the latest actions by the central bank, which has also slashed interest rates, eased banking regulations and announced other programs aimed at supporting home loans, currency markets and small businesses.

Fed Chairman Jerome Powell said the bank is using its emergency powers to “unprecedented extent”.

He said: “We will continue to use these powers forcefully, proactively and aggressively until we’re solidly on the way to recovery.”

The Congress has also passed a roughly $2 trillion rescue bill, which funds direct payment for households, assistance for businesses and increased unemployment benefits. Lawmakers are now discussing further relief.

However, the number of people and companies seeking assistance has overwhelmed rescue efforts so far.