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USALatest NewsJob creation and lossesLabour market

US unemployment claims leap three million in a week

by Rob Moss 26 Mar 2020
by Rob Moss 26 Mar 2020 Broadimage/Shutterstock
Broadimage/Shutterstock

The US Department of Labor has announced that new unemployment insurance claims leapt by more than three million last week as the coronavirus pandemic hits the country’s economy.

There were 3.28 million new claims in the week commencing 15 March. One week earlier the figure stood at just 282,000.

Last week’s figure is the highest on record, and nearly five times higher than the previous high in October 1982, when it was 695,000.

The Department of Labor said that every US state cited Covid-19 as the cause, with the service sector, particularly hotels and restaurants, being worst affected.

New York City, which accounts for nearly 5% of coronavirus cases worldwide, recorded a 1,000% increase in new unemployment claims.

Daniel Zhao, senior economist at Glassdoor, said: “The coronavirus outbreak is a truly unprecedented event in American economic history.

“Unlike past economic slowdowns, the outbreak’s sudden onset is flash freezing the economy by forcing businesses to shut down and putting millions of American workers out of jobs.”

Nick Bunker, economist at Indeed’s Hiring Lab, said the news put the US unemployment rate at around 5.5%. “These numbers are a sign of just how much damage the labour market has quickly taken.”

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He added: “Many of these workers were employed in industries that may have to remain shuttered for quite some time. We’re also seeing a general decline in the trend of job postings. All signs point to these numbers being merely the beginning of a rough road ahead.”

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Rob Moss

Rob Moss is a business journalist with more than 25 years' experience. He has been editor of Personnel Today since 2010. He joined the publication in 2006 as online editor of the award-winning website. Rob specialises in labour market economics, gender diversity and family-friendly working. He has hosted hundreds of webinar and podcasts. Before writing about HR and employment he ran news and feature desks on publications serving the global optical and eyewear market, the UK electrical industry, and energy markets in Asia and the Middle East.

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1 comment

andypep 3 Apr 2020 - 4:27 pm

I think it is about 10 million unemployed now.
The article says “past economic slowdowns” which is not really true. This will not be a recession like any America has experienced before and will probably bounce back to the absolute booming place the economy was at, at the start of 2020. Trump intends to cancel income tax until the end of the year, plus a few other tricks, and after a few months when people are sure the outbreak won’t flare back up and people are getting to spend their entire wage with the confidence of having beaten the virus with heir countrymen sticking together. Spending will go through the celebratory roof. Mark My Words!
What happens to our American brothers, happens to us.

Comments are closed.

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