Last week, the number of Americans seeking unemployment benefits jumped by 5.25 million. It is because coronavirus caused massive job losses. Moreover, it continued to mount.
That is bringing total claims over the four weeks ended April 11 to nearly 22 million workers. Since the 2008 financial crisis, it erased the entire gains of the labor market. Thus, it is a stunning sign of the colossal economic damage inflicted by the outbreak of the virus. The most significant number of Americans seeking jobless aid in four weeks was 2.7 million in the fall of 1982, before the coronavirus.
Moreover, that brings the unemployment rate, with a labor force that totals about 162 million people
Thus, it is exceeding the 10 percent peak of the Great Recession that happened a decade ago. It topped the previous post-World War II high of 10.8 percent in 1982. Thus, it brings the United States closer to Depression-era levels of unemployment. A growing number of economists have warned that the so-called “Great Lockdown” will, for sure, push the global economy, not the worst recession since the Great Depression.
Unemployment and Survey
Refinitiv surveyed economists. Most of them expect that the number of initial claims for state unemployment benefits will 5.1 million. Moreover, last week initially reported a total of 6.606 raised slightly by 9,000 to 6.615 million.
The report is providing the most up-to-date evidence on the market of labor and economic health. Moreover, it is reinforcing economists’ views that the United States has already entered a sharp recession. It brings an end to a historically long, 11-year economic expansion.
Daniel Zhao is a senior economist at Glassdoor. He says that the torrent of unemployment claims is the result of the ongoing shutdown that is non-essential businesses. Nevertheless, the 22-million-job question looms over the labor market is whether these layoffs will be permanent or temporary.
Let’s hope that a difficult situation will change soon.
