The number of Americans applying for unemployment benefits last week rose to a record 6.6 million, and new jobless claims rose to 10 million in the last two weeks of March, all efforts to slow down the coronavirus hit the economy.
Countless businesses across the country have had to close or scale hours, throwing people out of work and provoking an unprecedented back-to-back rise in early unemployment claims. The new claims will continue to grow over the next few weeks.
Over the past two weeks, new claims have easily outpaced the number of people who have accumulated benefits during the 2007-2009 recession. At the tail end of the last recession, the then record 6.6 million people benefited.
The clutch of unemployed Americans will soon surpass the previous record of 15.3 million, known as the great recession. Economists estimate that 25 million Americans or more will lose their jobs in the next few months, at least temporarily.
What happened: The Labor Department said that early unemployment claims increased to 6.65 million over time, up from 3.34 million revised in the previous week. The two-week increase easily broke the previous one-week record in October 1982 of 695,000.
A month ago, new claims were in the low 200,000s and close to a half-century low.
The states of California (692,394) and New York (286,404) recorded the largest increases based on uncorrected data.
The level of arguments can still be underestimated. Some states continue to have trouble handling large jobless claims. After years of low claims, their small staff and computer systems sank.
The Big Picture: The amazingly big increase in new claims in the U.S. It clearly shows just how much damage the pandemic has done to the economy. The federal government is seeking to relieve businesses and homes of more than $ 2 trillion and provide a livelihood for the economy.
It may not be enough, but it can help the economy in the short term. Millions of Americans who have lost their jobs or become depressed may find themselves out of unemployment more than they earn wages under their old jobs.
Market Reaction: The Dow Jones Industrial Average DJIA, -4.44% and the S&P 500 SPX, -4.41% opened higher on Thursday trading. Stocks have been hit well over the past month. 10-year Treasury Yield TMUBMUSD10Y, 0.587% to 0.59% Margin.
Stocks have been hit well over the past month. 10-year Treasury Yield TMUBMUSD10Y, 0.587% to 0.59% Margin.