Another 5.2 million people report unemployment, which is contributing to the economic destruction of the coronavirus pandemic - News-Credit-Mortgage-Coin


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Thursday, April 16, 2020

Another 5.2 million people report unemployment, which is contributing to the economic destruction of the coronavirus pandemic

A further 5.2 million people submitted initial unemployment claims for the week to April 11, according to the Department of Labor, which contributed to the sharpest and most serious rise in unemployment in the country's history.

Thursday's report is the fourth in a row and shows more than a million initial applications, a level that had never been reached before.

In total, more than 22 million people applied for initial benefits within just four weeks, which corresponds to about one in seven employees in the economy.

Economists believe that the unemployment rate is likely to be at least 15 percent, an astounding rise from a 50-year low of 3.5 percent earlier this year. Some predict that this number could reach up to 20 percent of depression.

Stock futures, which appear to have already priced in the ongoing economic catastrophe, remained stable in the news, and trading even remained in a somewhat positive range.

The economy has faltered as a result of the coronavirus pandemic and steps to combat it.

Social distance and orders at home across the country have resulted in small businesses, bars, restaurants, shopping centers, cinemas and sports arenas closing their doors.

President Trump, who based much of his 2020 White House reelection campaign on his strong economic numbers, sought to get the economy going again.

The latest number of unemployment claims was below the 6.9 million high reached two weeks ago, and the similarly stunning 6.6 million filed the previous week suggest that the most intense rate of job losses could be over.

While seasonally adjusted numbers tend to be the best measure of unemployment claims, some economists have found that the adjustment formula used to determine the numbers during the crisis, which leads to unprecedented movements in the labor market, may not be as useful.

The unadjusted data showed 4,971,823 claims for the week, a decrease of around 20 percent compared to the previous week. For comparison: the comparable week last year had only 196,364 claims.

The official unemployment figures for the Ministry of Labor for April, which contain the data in the last damage report, are only due in early May. Newly created jobs are also taken into account.

It may have some good news as millions of companies apply for the government's payment protection program. The $ 349 billion program, launched in March under the CARES $ 2.2 trillion emergency rescue law, provides forgiving loans to small businesses to keep workers on the payroll.

The program, which is expected to run out of funds on Thursday morning, has already approved 1,637,000 applications and enables companies to reinstate redundant workers.

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