More than 30 million Americans have now lost their jobs in the six weeks since the coronavirus outbreak began, in order for the US economy to continue slipping into a crisis that is becoming the most devastating since the 1930s .
There were 3.8 million new unemployment benefit claims filed last week, according to the latest figures from the Labor Department that were released on Thursday.
Over 26 million have applied for & # 39; in the previous five weeks for help, and add to & # 39; the largest stretch of US job losses on record.
Last week's filings have raised the number of people seeking unemployment benefits since March 21 to about 30.3 million, roughly 18.4 percent of & # 39; s population of & # 39; e working age.
The layoffs amount to 1 in 6 American workers and include more people than Texas's high population, or more people living together in New York and Chicago metropolitan areas.
The latest numbers for unemployment benefits follow the news on Wednesday that the US economy has experienced its sharpest decline in the first quarter – 4.8 percent – since the 2008 financial crisis.
There were 3.8 million new unemployment benefit claims filed last week, according to the latest figures from the Labor Department released on Thursday
More than 30 million Americans have now lost their jobs in the six weeks since the coronavirus outbreak began, in order to further slide the US economy into a crisis that is becoming the hottest since the 1930s
In almost every sector, non-essential businesses are closed and workers are sent home with no clear idea of when or if they may be recalled. An economic recovery could be months or years ago, though executives in a few states have begun to allow some companies to reopen under certain restrictions.
With more employers to cut payrolls to save money, economists have predicted that unemployment for April could go as high as 20 percent. That would be the highest rate since it reached 25 percent in the & # 39; Great Depression of & # 39; e 1930s.
The states with the largest increases in new unemployment claims last week were in Florida (+326,251), Connecticut (+68,758), West Virginia (+31.811), Louisiana (+12.270) and Texas (+6.504).
Although weekly unemployment enrollments remain very high, data from last week highlighted the fourth straight weekly decline, raising hopes that the worst could be over. Weekly claims turned out to be the highlight on a record of 6,867 million in & # 39; week ended March 28.
Some of the & # 39; downsizing claims have been attributed to the & # 39; a federal government that made provisions for small businesses to access loans that could be partially forgiven if used for employee salaries.
For the face value, the roles of balloon-filled unemployment implicate a jump in unemployment levels to above 15 percent in April.
However, economists say this is unlikely due to the nature of job losses during the lockdowns. The government has allowed people temporarily unemployed to register reasons related to COVID-19 for unemployment benefits.
This includes those in quarantine with the expectation to return to work, as well as people who leave work because of a risk of exposure or infection or to care for a family member.
Dow drops 250 points as unemployment claims rise by 3.8 million – but Wall Street is still headlining its best month in 30 years
Wall Street equity indices dipped on Thursday at the end of a strong month for Wall Street, as new unemployed claims data exceeded Facebook and Tesla's rising revenue.
The S&P 500 is on course for its best month since 1974, driven by dramatic US monetary and fiscal incentives and hopes for a resurgence in business activity as states re-open coronavirus lockon. The Dow is up 12 percent in April, which would be the best month since 1987.
At 9.31pm, the Dow Jones Industrial Average was down 255.30 points, up 1.04 percent, at 24,378.56. The S&P 500 was down 1 percent and the Nasdaq composition was down 0.33 percent.
All three US equity indices ended Wednesday's session near the high point in February, after positive partial data from a trial with Gilead Science's antiviral remedy showed an improved recovery time in COVID-19 patients.
Before the coronavirus outbreak led to 30 million job losses, average gains in wages and benefits gradually increased during the first three months of this year.
The employment cost index rose 0.8 percent in the first quarter, the Department of Labor said on Thursday. The wages and benefits measure has grown 2.8 percent in the past 12 months, an average that has been relatively consistent since 2018.
Loans and salaries, which account for 70 percent of compensation costs, climbed 0.9 percent. Benefit costs, which cover pension plans and health insurance, increased 0.4 percent.
While businesses across the country have cut off and dismissed tens of millions of workers, the economy has been in an almost paralysis in just a few weeks.
Factories, hotels, restaurants, department stores, cinemas and many small businesses are closed. House sales are falling, households are spending spending and consumer confidence is falling.
With some signs that the viral outbreak may have plateaued at least in certain areas of the country, some executives have taken tentative steps to begin re-opening their economies.
However, research shows that a large majority of & # 39; Americans on & # 39; e remains to return to shopping, travel and other normal economic activity. That suggests that many industries will face wasted or reduced turnover for weeks or months to come and may not be able to recruit laid-off workers.
Many consumers, whose spending drives most of the economy, may be slow to start shopping, traveling and eating out. Some are likely to remain scared of contracting the virus, and local and state officials are likely to maintain limits on the number of people who can meet in certain places at one time or another.
Consumer confidence, as measured by the Conference Board, has dropped to a six-year low, and its measure of how Americans view the current economy fell by a record amount.
About a fifth of & # 39; Americans expect their income in & # 39; the next six months will fall, the Conference Board found, the worst of such reading in more than seven years. That reinforced the belief that Americans will remain cautious in their spending for coming months.
Coronavirus crashes economy: US records record sharpest first quarter since the 2008 financial crisis with GDP shrinking by 4.8%
The US economy recorded its worst first quarter since the 2008 financial crisis this year, according to new data released on Wednesday that does not paint a clear picture of the economic devastation it has experienced. t caused the pandemic of coronavirus.
A report released by the Bureau for Economic Analysis shows that GDP fell by 4.8 per cent annually between January and March.
Consumer spending fell 7.6 percent and business investment shrank 8.6 percent.
The data is not definitive and in a footnote, the agency said the true picture is likely to be much less. Analysts had predicted that GDP would shrink by as much as 3.5 percent. They are now afraid of Q2 numbers that will reflect a longer period of economic shutdown – including the April half and some May.
Data released by the US Bureau of Economic Analysis on Wednesday revealed that GDP fell by 4.8% in the first quarter of 2020
The Q1 numbers reflect only the last few weeks of March when companies were only just forced to close.
On Monday morning, White House economic adviser Kevin Hassett warned that the second quarter could reflect a 20 to 30 percent decline – something that has not been seen since the Great Depression of the 1930s.
The downturn reflected a downturn in & # 39; economic activity in & # 39; in the last two weeks of March, in which millions of Americans sought unemployment benefits.
Most of & # 39; major components of & # 39; economic production of & # 39; FS – including consumer spending, that & # 39; t two-thirds of & # 39; e economic activity – fell sharply.
Gregory Daco, chief US economist for Oxford Economics, said the Q1 downturn is & # 39; only the tip of & # 39; an iceberg & # 39; and submit it to & # 39; By the end of June, the economy will be 12% smaller than it was at the beginning of the year.
Daco said: & # 39; Before the coronavirus shock, the economy went relatively well.
& # 39; The shock we & # 39; ve been in & # 39; The second half of March has actually led to a sudden cessation of spending on many services and even spending on some goods. & # 39;
The bad report, along with record unemployment, could put pressure on states and local governments to reopen their economies.
It could also spell more trouble for President Donald Trump after criticizing & # 39; the initial slow response of & # 39; e White House on pandemic because he is seeking re-election in November.
Congress has approved a fiscal package of about $ 3 trillion and the Federal Reserve has cut interest rates to almost zero and greatly expanded its role as a banker of last resort, but economists say those measures aren't enough.
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