U.S. weekly jobless claims seen hovering near record highs
9-04-2020, 13:29

Font size: [ A+ ] / [ A- ]

WASHINGTON (Reuters) - The number of Americans seeking unemployment benefits in the last three weeks likely totaled a staggering 15 million as tough measures to control the novel coronavirus outbreak abruptly ground the country to halt, which would cement views the economy was in deep recession.

Thursday’s weekly jobless claims report from the Labor Department, the most timely data on the economy’s health, would strengthen economists’ expectations of job losses of up to 20 million in April. The government reported last Friday that the economy purged 701,000 jobs in March. That was the most job losses since the Great Recession and ended the longest employment boom in U.S. history that started in late 2010.

“These dismal numbers suggest another record-breaking April jobs report,” said Beth Ann Bovino, chief U.S economist at S&P Global Ratings in New York. “America is now in recession and as it appears to deepen, the question is how long it will it take before the U.S. recovers.”

The number of initial claims for state unemployment benefits probably slipped to a seasonally adjusted 5.250 million for the week ended April 4 from 6.648 million, according to a Reuters survey of economists.

The anticipated lower reading is likely because the model that the government uses to strip out seasonal fluctuations shows a downside bias for last week’s data. States also appear to be struggling to process high volumes of claims.

Estimates in the survey were as high as 9.295 million. Going by the average forecast, last week’s claims data would bring the cumulative jobless benefits claims to more than 15 million since the week ending March 21.

With more than 95% of Americans under “stay-at-home” or “shelter-in-place” orders, reports continue to mount of state employment offices being overwhelmed by a deluge of applications. Mike Ricci, a spokesman for Maryland Governor Larry Hogan, wrote on Twitter on Wednesday that “we have approximately 1,000 calls coming through in every two hour period of time,” noting that “currently, federal employees and people who have worked in multiple states cannot file online.”

RANKS OF UNEMPLOYED SWELLING

 

As such, any moderation in claims last week would probably be temporary. The breadth of businesses shuttered because of the stringent measures to curb the spread of COVID-19, the disease caused by the coronavirus, has expanded from bars, restaurants and other social gathering venues to transportation and factories. The United States has the highest number of confirmed COVID-19 cases in the world.

Businesses are also encouraging their lowest paid hourly workers to apply for unemployment benefits to take advantage of an extra $600 per week for up to four months. This enhancement is part of a historic $2.3 trillion rescue package and is on top of existing jobless benefits, which averaged $385 per person per month in January.

It is equivalent to $15 per hour for a 40-hour workweek. The federal minimum wage is about $7.25 per hour.

“The new $600 Federal payment alone still exceeds average earnings in leisure and hospitality by almost 50%,” said Andrew Hunter, a senior U.S. economist at Capital Economics.

“This may in turn be part of the reason why jobless claims have soared so rapidly in recent weeks. Workers may be more accepting of temporary furloughs if they stand to lose little income, and several major retailers have cited the new provisions when announcing layoffs.”

Thursday’s claims report is also expected to show the number of people continuing to receive benefits after an initial week of aid shot up to 8.0 million in the week ending March 28 from 3.029 million in the prior week, according to the Reuters survey. That would obliterate the record 6.635 million hit in May 2009.

The so-called continuing claims data is reported with a one-week lag and is viewed as a better gauge of unemployment and its impact on gross domestic product.

“The labor market has entered a traumatic period,” said Gregory Daco, chief U.S. economist at Oxford Economics in New York. “We foresee the unemployment rate spiking to 14% in April.”

The economy is believed to have contracted sharply in the first quarter, with even an historic decline in GDP being forecast for the second quarter. Economists say the economy entered recession in March.

The National Bureau of Economic Research, the private research institute regarded as the arbiter of U.S. recessions, does not define a recession as two consecutive quarters of decline in real gross domestic product, as is the rule of thumb in many countries. Instead, it looks for a drop in activity, spread across the economy and lasting more than a few months.

 

Comments: 3515
#3335   Hye
      
Do you mind if I quote a couple of your posts as long as I provide credit and sources back to your blog?
My blog is in the very same niche as yours and my visitors would certainly benefit from
a lot of the information you provide here. Please let me know if this ok with
you. Appreciate it!

Take a look at my web site; Jacksonville NC electric
7 January 2026 03:13
#3334   Clarence
      
I am extremely impressed along with your writing skills as neatly as with the layout on your weblog.
Is this a paid subject or did you customize it your self?
Anyway stay up the nice quality writing, it is uncommon to see
a nice weblog like this one these days..

my blog post: driveway repair Nashville
7 January 2026 03:11
#3333   Santo
      
You're so interesting! I do not suppose I've truly read through something like
this before. So nice to find someone with a few genuine thoughts on this topic.

Really.. thanks for starting this up. This web site is something that is needed on the web, someone with
a little originality!

Also visit my web-site landscaping Cape Girardeau
7 January 2026 03:08
#3332   Ashli
      
Thank you, I've recently been looking for information approximately this subject for a long time and
yours is the best I have found out so far.

But, what about the conclusion? Are you sure about the source?


Feel free to surf to my webpage; foundation repair Nashville
7 January 2026 03:05
#3331   Donette
      
I am curious to find out what blog system you are utilizing?
I'm having some minor security problems with my latest blog and I'd like
to find something more safeguarded. Do you have any suggestions?


Also visit my web site - lawn mowing Cape Girardeau

I pay a quick Visit Website each day some web
pages and websites to read posts, but this blog presents quality based writing.
7 January 2026 03:03
#3330   Martha
      
Pretty component of content. I just stumbled upon your site and in accession capital to
say that I get in fact enjoyed account your weblog posts.
Anyway I'll be subscribing for your feeds and even I fulfillment you get
right of entry to constantly fast.

My web blog: foundation repair Nashville
7 January 2026 02:38
#3329   Ingrid
      
Hello my loved one! I want to say that this article is awesome, great written and come
with almost All Pro Services vital infos.

I would like to peer more posts like this .
7 January 2026 02:35
#3328   Jett
      
Hi there to every body, it's my first visit of this blog; this web site includes awesome and genuinely excellent stuff in support
of readers.

Also visit my web-site: bathroom remodeling Lexington KY
7 January 2026 02:33
#3327   Adolfo
      
I am in fact glad to read this web site posts which contains plenty of useful facts,
thanks for providing these statistics.

Here is my web-site water damage remediation Salt Lake
City
7 January 2026 02:32
#3326   Mckinley
      
Hiya! I know this is kinda off topic however I'd figured I'd
ask. Would you be interested general contractors in Nashville TN trading links or maybe guest writing a blog post or vice-versa?
My site covers a lot of the same topics as yours and I
think we could greatly benefit from each other. If you're interested feel free to shoot me an e-mail.
I look forward to hearing from you! Awesome blog
by the way!
7 January 2026 02:28
#3325   Isis
      
I must thank you for the efforts you have put in penning this website.
I really hope to see the same high-grade blog posts by you in the future as well.

In fact, your creative writing abilities has inspired me to get my very own site now ;)

Also visit my website; Phoenix Plumbing CO
7 January 2026 02:27
#3324   Cliff
      
Very quickly this web site will be famous among all blog viewers, due to it's
pleasant content

Look into my site - commercial electrical service
7 January 2026 02:26
#3323   Otis
      
I enjoy, result in I found exactly what I used
to be looking for. You have ended my 4 day long hunt!
God Bless you man. Have a nice day. Bye

Here is my page All Pro Water Damage
7 January 2026 02:24
#3322   Cameron
      
It's remarkable for me to have a web page, which
is helpful in support of my knowledge. thanks admin

Have a look at my website; electrical contractors Jacksonville NC
7 January 2026 02:21
#3321   Tyrell
      
I wanted to thank you for this wonderful read!! I absolutely enjoyed every bit of it.

I've got you book-marked to look at new things you post…

Also visit my web blog; landscape designers
Honolulu HI
7 January 2026 02:21
#3320   Darnell
      
My partner and I stumbled over here by a different web page and thought I should check things out.
I like what I see so now i am following you. Look forward to looking over
your web page repeatedly.

My site phoenix plumbing company
7 January 2026 02:19
#3319   Elissa
      
This is my first time pay a visit at here and
i am in fact pleassant to read everthing at single place.



Check out my blog - plumbing services
Phoenix
7 January 2026 02:18
#3318   Hayden
      
I do consider all of the concepts you have offered to your post.
They are really convincing and will certainly work. Still,
the posts are very short for starters. May you please lengthen them a bit from next
time? Thanks for the post.

Feel free to surf to my web-site: Denver Headshots
7 January 2026 02:10
#3317   Kandis
      
Quality content is the important to invite the
viewers to pay a visit the website, that's what this web
page is providing.

Have a look at my web site :: landscaping contractor Cape Girardeau MO
7 January 2026 02:09
#3316   Fredrick
      
each time i used to read smaller articles or reviews
which as well clear their motive, and that is
also happening with this article which I am reading at
this time.

Visit my web site ... Oahu landscaping services
7 January 2026 02:08
Add Comments

Name:*
E-Mail:
  Geo Keyboard  
 

Dear reader, guardian.ge welcomes your comments. Please express your views on topic and be respectful of others.

bold italic underline strike | align left centered align right | Ensert smilies insert linkInsert protected URL Choice the color | hidden text insert quote Convert selected text from transliteration to Cyrillic alphabet Insert spoiler

Code: *


Back1 ... 6 7 8 9 10 11 12 13 14 ... 176Next