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: 3517
#2657   Sherrill
      
Thanks for sharing such a fastidious thought, post
is good, thats why i have read it fully

Feel free to visit my homepage ... Boston trash removal
16 November 2025 15:50
#2656   Buck
      
Hey there, I think your website might be having browser compatibility issues.
When I look at your blog in Chrome, it looks fine but when opening in Internet Explorer,
it has some overlapping. I just wanted to give you a quick heads up!
Other then that, fantastic blog!

My blog post ... in-home care Salisbury NC
16 November 2025 15:43
#2655   Pauline
      
Appreciate the recommendation. Will try it out.


Here is my web site general contractors in Nashville TN
16 November 2025 15:40
#2654   Horace
      
Hi, i think that i saw you visited my website so i came to return the desire?.I am trying to find things to enhance my website!I suppose
its adequate to make use of some of your ideas!!

My webpage Non-medical home care Lexington
16 November 2025 15:32
#2653   Shirley
      
These are actually enormous ideas in on the topic
of blogging. You have touched some pleasant points here. Any
way keep up wrinting.

Feel free to visit my blog: drone
surveying construction
16 November 2025 15:08
#2652   Fanny
      
This information is worth everyone's attention. How can I find out
more?

my webpage :: foundation repair Murfreesboro TN
16 November 2025 14:59
#2651   Shannon
      
I blog quite often and I seriously thank you for your
information. Your article has truly peaked my interest.
I will bookmark your blog and keep checking for new details about once per
week. I opted in for your Feed as well.

my web blog ... in-home care Winston-Salem NC
16 November 2025 14:37
#2650   Monty
      
Aw, this was a very good post. Taking the time and
actual effort to generate a good article… but
what can I say… I hesitate a lot and never seem
to get anything done.

my blog post Alta survey Salt Lake City
UT
16 November 2025 14:34
#2649   Matilda
      
Thank you for any other informative blog. Where
else may just I am getting that type of information written in such an ideal method?
I've a project that I am just now working on,
and I've been on the glance out for such information.

Also visit my web site :: site survey companies
16 November 2025 14:16
#2648   Connor
      
Hmm it appears like your site ate my first comment (it was extremely
long) so I guess I'll just sum it up what I submitted and say, I'm
thoroughly enjoying your blog. I as well am an aspiring blog
blogger but I'm still new to everything. Do you have any helpful hints for beginner blog
writers? I'd really appreciate it.

Visit my web site in-home care Salisbury NC
16 November 2025 13:12
#2647   Karissa
      
Hi there, You've done an excellent job. I will certainly digg it and personally suggest to my friends.
I am sure they'll be benefited from this website.


My blog post ... elderly care Salisbury
16 November 2025 13:04
#2646   Libby
      
This piece of writing is truly a nice one it helps new the web users, who are wishing general contractors in Nashville TN
favor of blogging.
16 November 2025 12:51
#2645   Tiffani
      
Why viewers still use to read news papers when in this technological world all is existing on net?


my page - junk removal Boston MA
16 November 2025 12:31
#2644   Ralph
      
I have been exploring for a little for any high-quality articles
or weblog posts on this kind of space . Exploring in Yahoo I eventually stumbled upon this site.
Reading this information So i am glad to convey that I have
a very just right uncanny feeling I found out exactly
what I needed. I so much no doubt will make sure to do not fail to remember this website and provides it a glance regularly.


My site: Companion Care Mocksville NC
16 November 2025 12:13
#2643   Marisa
      
Why people still make use of to read news papers when in this technological globe everything is available on web?



Feel free to visit my web-site :: concrete Franklin TN
16 November 2025 12:08
#2642   Doris
      
It's an awesome piece of writing designed for all the internet people;
they will take advantage from it I am sure.


my web blog; foundation repair Murfreesboro TN
16 November 2025 12:04
#2641   Brock
      
Pretty! This has been an extremely wonderful article.
Thank you for supplying this information.

Feel free to surf to my homepage :: Alta
survey Salt Lake City UT
16 November 2025 11:56
#2640   Alfonzo
      
Hello 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!

Review my homepage Elder care services Lexington NC
16 November 2025 11:02
#2639   Matilda
      
I think the admin of this web page is in fact working hard
in support of his web page, for the reason that here every stuff is
quality based stuff.

Feel free to visit my blog post: concrete Franklin TN
16 November 2025 10:59
#2638   Allie
      
Everyone loves it when people come together and share ideas.
Great website, keep it up!

My web page in-home care Winston-Salem
NC
16 November 2025 10:40
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 ... 40 41 42 43 44 45 46 47 48 ... 176Next