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: 584
#264   Pilar
      
Thanks designed for sharing such a nice thought, article is nice, thats why
i have read it entirely

Feel free to surf to my web-site :: ChatGPT Nederlands
30 December 2024 04:33
#263   Melodee
      
Thanks for sharing your thoughts about million. Regards

Here is my site :: ChatGPT Gratis
30 December 2024 03:40
#262   Wilmer
      
Find out how much the jackpot was worth and what other prizes were paid out
in past draws.

my web site ... lotto prediction
30 December 2024 03:15
#261   Israel
      
This is a very good tip especially to those fresh to the
blogosphere. Brief but very precise information… Many
thanks for sharing this one. A must read article!


Feel free to surf to my web-site: ChatGpt
30 December 2024 03:10
#260   Jacques
      
I read this post fully regarding the difference of newest and previous technologies, it's amazing
article.

Check out my website ... ChatGpt
30 December 2024 02:18
#259   Tressa
      
1хбет бонус на первый депозит
промокод 1хбет при регистрации betonmobile ru
1хбет официальный сайт промокод при регистрации
промокоды букмекерских контор
2024
промокоды букмекерских контор на сегодня
1xbet телеграмм промокод
1xbet бонус без депозита 1xbetbetting xyz
1хбет 5000 бонусов

Feel free to visit my webpage :: tranzexpay 1xbet условия бонуса
30 December 2024 00:02
#258   Katherin
      
I like the helpful info you provide to your articles. I'll bookmark your weblog and test once more
here frequently. I'm moderately certain I will be told many new stuff proper right here!

Good luck for the following!

Also visit my site ChatGPT
In het Nederlands
29 December 2024 15:04
#257   Rufus
      
Have you ever considered about adding a little bit more than just your articles?

I mean, what you say is valuable and everything.
But imagine if you added some great visuals or videos to give your posts more, "pop"!
Your content is excellent but with images and video
clips, this blog could certainly be one of the best in its niche.
Very good blog!

my web site ... ChatGPT
Gratis
29 December 2024 14:30
#256   Nell
      
It's versatile enough to incorporate elements of Deeep Tissue Massage for those specific areas needing
extra attention, without the intensity that comes with a full Deep Tissue session.

Feel free to visit my homepage; Swedish massage vs Deep tissue massage
29 December 2024 07:38
#255   Moises
      
Rifle through our bet365 evaluate to get a big-picture perpective oof the sportsbook.


My site 메이저사이트
29 December 2024 05:56
#254   Julian
      
Hello there! This post could not be written any better! Reading through this post reminds me of my good old room
mate! He always kept chatting about this. I will forward this write-up to
him. Pretty sure he will have a good read. Thanks
for sharing!

my website chat gpt Nederlands
29 December 2024 03:47
#253   Veronique
      
Hi I am so thrilled I found your webpage, I really found you by accident, while I was looking
on Digg for something else, Anyhow I am here now and
would just like to say thank you for a incredible post and a all round thrilling blog (I also love the
theme/design), I don’t have time to look over it all at the moment but I have book-marked it and also added in your RSS feeds, so when I have time I will be back to read a lot
more, Please do keep up the excellent b.

my page - Chat Gpt nederlands
29 December 2024 03:39
#252   Ruth
      
Informative article, exactly what I wanted to find.

Here is my blog post :: ChatGPT in het Nederlands
29 December 2024 03:24
#251   Carmelo
      
Amazing! This blog looks exactly like my old one! It's on a totally
different subject but it has pretty much the same layout and
design. Outstanding choice of colors!

Also visit my website - ChatGPT Gratis
29 December 2024 03:24
#250   Ralf
      
These are actually impressive ideas in regarding blogging.
You have touched some pleasant points here. Any way keep up wrinting.


Feel free to visit my blog - Chat Gpt nederlands
29 December 2024 03:23
#249   Cory
      
Hi to every single one, it's actually a fastidious for me to go to see
this site, it consists of precious Information.

Feel free to surf to my blog post iphone sd card reader
29 December 2024 02:51
#248   Marcella
      
European format (decimal odds) are used in continental Europe, Canada, and Australia.


Feel fee to visit my site - check here
29 December 2024 01:36
#247   Margart
      
BetOnline also makes it possible for customers to bet on combat sports like boxing and MMA.


my blog post: 온카
29 December 2024 00:15
#246   Linnea
      
Hi there to every one, the contents present at this website are in fact amazing
for people knowledge, well, keep up the
good work fellows.

Look at my site: ChatGPT Nederlands
28 December 2024 23:01
#245   Maurice
      
Hey there! This is my first visit to your blog! We are a group of volunteers
and starting a new initiative in a community in the same niche.
Your blog provided us valuable information to work on.
You have done a wonderful job!

Have a look at my web site ChatGPT Gratis
28 December 2024 22:36
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 ... 13 14 15 16 17 18 19 20 21 ... 30Next