2.4 Million Unemployment Claims Were Filed Last Week As COVID Continues To Wreck Economy

A State of Michigan Unemployment Agency office is seen in Cadillac Place that is currently closed because of coronavirus, COVID-19, in Detroit, Michigan on March 26, 2020. - President Donald Trump, keen for an early ... A State of Michigan Unemployment Agency office is seen in Cadillac Place that is currently closed because of coronavirus, COVID-19, in Detroit, Michigan on March 26, 2020. - President Donald Trump, keen for an early lifting of economically costly social distancing measures against the coronavirus, said he would propose dividing the United States by risk levels. In a letter to state governors released by the White House, Trump said that better testing now allows the mapping of virus threat on a local level. (Photo by JEFF KOWALSKY / AFP) (Photo by JEFF KOWALSKY/AFP via Getty Images) MORE LESS
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May 21, 2020 8:36 a.m.
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2,438,000 jobless claims were filed in the U.S. in the week ending on May 16 amid the COVID-19 outbreak, the Labor Department reported on Thursday morning.

Total unemployment claims are now at nearly 39 million since the virus began roiling the country.

An additional 2.2 million people sought aid under a new federal program for self-employed, contractor and gig workers, who are now eligible for jobless aid for the first time. These figures aren’t adjusted for seasonal variations, so the government doesn’t include them in the overall number of applications

The continuing stream of heavy job cuts reflects an economy that is sinking into the worst recession since the Great Depression. The nonpartisan Congressional Budget Office estimated this week that the economy is shrinking at a 38% annual rate in the April-June quarter. That would be by far the worst quarterly contraction on record.

Nearly half of Americans say that either their incomes have declined or they live with another adult who has lost pay through a job loss or reduced hours, the Census Bureau said in survey data released Wednesday More than one-fifth of Americans said they had little or no confidence in their ability to pay the next month’s rent or mortgage on time, the survey found.

During April, U.S. employers shed 20 million jobs, eliminating a decade’s worth of job growth in a single month. The unemployment rate reached 14.7%, the highest since the Depression. Millions of other people who were out of work weren’t counted as unemployed because they didn’t look for a new job.

Since then, 10 million more laid-off workers have applied for jobless benefits. Federal Reserve Chair Jerome Powell said in an interview Sunday that the unemployment rate could peak in May or June at 20% to 25%.

Across industries, major employers continue to announce job cuts. Uber said this week that it will lay off 3,000 employees, on top of 3,700 it has already cut, because demand for its ride-hailing services has plummeted. Vice, a TV and digital news organization tailored for younger people, announced 155 layoffs globally last week.

Digital publishers Quartz and BuzzFeed, magazine giant Conde Nast and the company that owns the business-focused The Economist magazine also announced job cuts last week.

Key Coronavirus Crisis Links

TPM’s COVID-19 hub.
Josh Marshall’s Twitter List of Trusted Experts (Epidemiologists, Researchers, Clinicians, Journalists, Government Agencies) providing reliable real-time information on the COVID-19 Crisis.
COVID-19 Tracking Project (updated data on testing and infections in the U.S.).
Johns Hopkins Global COVID-19 Survey (most up to date numbers globally and for countries around the world).
Worldometers.info (extensive source of information and data visualizations on COVID-19 Crisis — discussion of data here).
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