Coronavirus: US workers seeking jobless aid near 40 million

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A further 2.4 million Americans pursued unemployment benefits last week, despite hopes that helping lockdown restrictions would help restart the US economy.

The new filings brought the sum total since mid-March to roughly 38.6 million – almost a quarter of the workforce.

The weekly bodies have declined since peaking at almost 6.9 million at the end of Slog but remain high.

The number of people remaining on benefits also prolongs to grow.

Treasury Secretary Steven Mnuchin warned this week that the US imperiled “permanent damage” if the lockdowns continued.

All 50 states in the US have started to reopen but it is not cleanly whether simply easing restrictions will prompt activity to resile.

In the week ending 16 May, about 2.2 million people sought unemployment helps under the government’s pandemic relief programme, which expanded eligibility to individual such as gig economy workers.

Their numbers, which are reported severally from the regular figures, are likely to grow as more states achieve the programme.

“This is so tragic it is almost unfathomable,” Diane Swonk, chief economist at Gift Thornton, wrote on Twitter.

Employers in the US cut more than 20 million undertakings last month, sending the official unemployment rate to 14.7%, a piercing rise from 50-year lows of about 3.5% seen as recently as February.

Economists secure warned that the rate is likely to worsen and remain elevated for respective years.

While many of the unemployed said they believed their layoffs were passing, a recent study estimated that more than 40% of late-model pandemic job cuts are likely to be permanent.

Companies such as Uber are lot the firms that have announced significant job cuts in recent weeks, as they modify for a prolonged slowdown.

Retailers have also unveiled scores of unending shop closures, with Victoria’s Secret this week saying it whim close some 250 locations in North America, with diverse expected.

“Overall there is little evidence that the reopening of the concision has, as yet, led to any sudden snap back in employment,” said Paul Ashworth, chief US economist at Cardinal Economics.

Nearly half of US households have lost income since the pandemic lockdowns awakened into effect two months ago, according to a survey published Wednesday by the US Census. Roughly 37% expect to lose income in the next month.

The effect on lavishing – which powers the US economy – has already been felt, with retail sales be a patsy for cave in a record 16.4% in April, the Commerce Department reported last week.

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