US weekly jobless claims jump by 6.6 million and we’ve now lost 10% of workforce in three weeks – CNBC

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The ongoing surge in filings for unemployment insurance has been exacerbated by the expansion of those who can file claim. The $2.2 trillion federal coronavirus relief bill enacted last month has expanded the group to include the self-employed and independent contractors.

California, New York and Michigan saw the largest increase in claims last week. Those states are also among the hardest hit from the coronavirus pandemic.

Prior to the social distancing efforts used to combat the outbreak, the jobs market had been strong. In the six-month period prior to the economic shutdown, nonfarm payroll growth had averaged 221,000 a month. However, March saw a decline of 701,000 that only began to measure how deeply the virus had impacted the employment situation.

Most of that employment decline came in restaurants and drinking establishments, although health care and social assistance also took a hit. A more representative number of the actual impact to employment came through the Labor Department’s survey of households, which indicated a drop of nearly 3 million from the employment ranks.

A large contributor to that number was the 1.3 million people who dropped out of the labor force as they lost their jobs but were unable to look for work because of coronavirus-related restrictions. Those numbers helped push up the headline unemployment rate from 3.5% to 4.4% and drove a more encompassing number that includes those not looking for work and the underemployed from 7% to 8.7%, the biggest one-month gain in the history of that measure.

In its announcement Thursday, the Fed said the programs would total up to $2.3 trillion and include the Payroll Protection Program and other measures aimed at getting money to small businesses and bolstering municipal finances with a $500 billion lending program.

Source Article from https://www.cnbc.com/2020/04/09/weekly-jobless-claims-report.html

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