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: 3912
#3812   Art
      
30 June 2026 07:12
#3811   Sheldon
      
You really make it seem so easy with your presentation but I
find this topic to be really something that I think I would never understand.
It seems too complex and very broad for me.
I'm looking forward for your next post, I'll try to get
the hang of it!

Have a look at my homepage ... Genshin Impact walkthrough
29 June 2026 15:49
#3810   Aimee
      
Asimismo toca prestar atención a los sistemas financieros
aceptados. Un casino legítimo en Argentina ofrece Mercado Pago, transferencia
bancaria, CVU/CBU, y a veces criptomonedas.
Desconfiá mejor bono de bienvenida sitios
que solo aceptan métodos extraños.
29 June 2026 08:11
#3809   Brittany
      
References:


Legiano Casino Deutschland https://klimaexpress-tube.de/@qqrharold82793?page=about
29 June 2026 07:43
#3808   Lavonne
      
El catálogo criterios de valoración las máquinas online creció de manera notable en los últimos años.
Hoy en día, los jugadores argentinos tienen a un click miles de títulos de decenas
de software providers reconocidos.
28 June 2026 11:16
#3807   Rodrigo
      
Hello great blog! Does running a blog like this take
a massive amount work? I've no understanding of coding however I was hoping to start my
own blog in the near future. Anyways, if you have any ideas or techniques
for new blog owners please share. I know this is off subject
nevertheless I simply wanted to ask. Thanks!

my blog post - Apex legends tips
27 June 2026 21:23
#3806   Candace
      
Wow that was unusual. I just wrote an really long comment but after I clicked submit my comment didn't appear.
Grrrr... well I'm not writing all that over again. Regardless, just wanted
to say superb blog!

my site - site
27 June 2026 15:29
#3805   Bernd
      
Hi to every body, it's my first pay a visit of this web site; this webpage includes amazing and truly excellent material
in support of visitors.

Here is my page :: Homepage
27 June 2026 09:09
#3804   Valeria
      
References:


Legiano Casino No Deposit Bonus https://adufoshi.com/franklinstainf
27 June 2026 05:05
#3803   Kristofer
      
26 June 2026 14:41
#3802   Amado
      
References:


Legiano Casino Cashback pad.stuve.uni-ulm.de
26 June 2026 14:40
#3801   Jenna
      
References:


Legiano Casino Betrug https://black-thomas-4.technetbloggers.de
26 June 2026 14:35
#3800   Jeffry
      
26 June 2026 14:16
#3799   Wilbert
      
References:


River rock casino ca hipstrumentals.net
26 June 2026 13:45
#3798   Juliann
      
References:


Online casinos canada https://demo.indeksyazilim.com
26 June 2026 12:55
#3797   Essie
      
References:


Casino 247 https://kutomba.com
26 June 2026 12:45
#3796   Colette
      
References:


Online poker australia iamtube.jp
26 June 2026 12:18
#3795   Florida
      
References:


Real casino slots https://tiktub.com
26 June 2026 10:31
#3794   Shari
      
References:


Legiano Casino Tischspiele https://sonnik.nalench.com/user/taurusnepal19/
26 June 2026 10:29
#3793   Rena
      
I'm amazed, I must say. Seldom do I come across a blog that's equally educative and engaging,
and without a doubt, you've hit the nail on the head.
The problem is something too few folks are speaking intelligently about.
I'm very happy that I stumbled across this during my search for something concerning this.


my web site - Cyberpunk 2077 Crafting guide
26 June 2026 08:45
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 2 3 4 5 6 7 8 9 10 ... 196Next