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 COVID-19 in Detroit, Michigan on March 26, 2020. (Photo by JEFF KOWALSKY/AFP via Getty Images)
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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.

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Notable Replies

  1. So. Much. Winning. MAGA!

  2. Did they reduce the count by guys now selling apples from carts on the corner, or shining shoes or shoveling snow? (ed.)
    Many people are saying those have been real growth industries.
    Collecting cans, did you say? I heard that’s kind of a monopoly?
    Maybe the attorney general should look into it.

  3. What can actually be said today that hasn’t already been said a hundred times? Enough already and let’s get this guy, and his supporters, out of government altogether. As this pandemic unfolds, the tragedy and grief it is spawning now will take years to heal. Truly, a disaster of epic proportions.

  4. Yep, we will rebuild from the ashes AND WE’RE NEVER GOING TO GO BACK.

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