Carnage: 6.6 Million in Initial Jobless Claims, 10 Million Two Week Total
It’s become something of a joke when economic numbers come out with the ubiquitous “unexpected” tag, but the data starting to come in on the economic toll of the COVID-19 virus and subsequent social shut-down was expected to be bad, and indeed is off the charts.
The torrent of Americans filing for unemployment insurance continued last week as more than 6.6 million new claims were filed, the Labor Department reported Thursday. That brings to 10 million the total Americans who filed over the past two weeks.
Economists surveyed by Dow Jones estimated 3.1 million, a week after 3.3 million filings in the first wave of what has been a record-shattering swelling of the jobless ranks. The previous week’s total was revised higher by 24,000.
On an unadjusted basis, the total was 5.8 million, a number that some economists consider more relevant as seasonal adjustments are less relevant due to the unusual impact the coronavirus-induced shutdown has had on the U.S. economy.
The 4-week moving average, which smooths fluctuations, was 2.054 million, up 327,250 from aw eek ago and the highest since Jan. 14, 2017.
Before the coronavirus shut down major parts of the U.S. economy, the highest week for claims was 695,000 in 1982. The Great Recession high was 665,000 in March 2009.
However, the sudden stop as the government has instituted social distancing policies caused a cascade of joblessness unlike anything the nation has ever seen.
Those at the lower end of the wage scale have been especially hard-hit during a crisis that has seen businesses either cut staff outright or at best freeze any new hiring until there’s more visibility about how efforts to contain the coronavirus will work.