Job losses from the coronavirus pandemic in the United States has climbed to 26.4 million as Congress is poised to approve a new stimulus measure and
Job losses from the coronavirus pandemic in the United States has climbed to 26.4 million as Congress is poised to approve a new stimulus measure and governors in some states move to slowly reopen businesses, AFP is reporting
Sobering data released by the Labor Department showed 4.4 million Americans filing new claims for jobless benefits in the week that ended April 18, underscoring the damage done to the world’s largest economy by the crisis.
All told, 26.453 million people have filed claims for jobless benefits since March 21, representing 16.2% of the labor force. The economy created 22 million jobs during the employment boom which started in September 2010 and abruptly ended in February this year.
The House of Representatives was set to give its seal of approval to the latest stimulus bill, which would add nearly US$500 billion in fresh relief funds for devastated small businesses and overwhelmed hospitals. That builds upon the massive US$2.2 trillion CARES Act stimulus measure passed in late March.
The new bill under consideration would provide another US$320 in funding for a depleted program to aid small businesses, along with US$75 billion for hospitals, US$25 billion to expand virus testing and US$60 billion in disaster recovery loans and grants.
In states where the outbreak has been less severe, governors are moving to begin the slow process of returning to normal, some in response to a spate of anti-lockdown protests. But their measures are being called into question – and Trump specifically criticised a decision to open hair salons, tattoo parlours and gyms in Georgia from Friday.
Calling the jobless figure “extraordinarily elevated,” Oxford Economics predicted the US was on track for a spike in the unemployment rate to 24%.
The labor market slaughter added to collapsing oil prices, retail sales, manufacturing production, homebuilding and home sales in reinforcing economists’ contention that the economy entered recession in March.
Economists believe some people thrown out of work because of state-mandated “stay-at-home” orders found employment at supermarkets, warehouses and delivery services companies. They expect the unemployment rate will shatter the post-World War Two record of 10.8% touched in November 1982.
