Please ensure Javascript is enabled for purposes of website accessibility
33 Million Have Sought US Unemployment Aid Since Virus Hit
gvw_ap_news
By Associated Press
Published 5 years ago on
May 7, 2020

Share

WASHINGTON — Nearly 3.2 million laid-off workers applied for unemployment benefits last week as the business shutdowns caused by the viral outbreak deepened the worst U.S. economic catastrophe in decades.

Roughly 33.5 million people have now filed for jobless aid in the seven weeks since the coronavirus began forcing millions of companies to close their doors and slash their workforces. That is the equivalent of one in five Americans who had been employed back in February, when the unemployment rate had reached a 50-year low of just 3.5%.

Applications for jobless aid rose in just six states last week, including Maine, New Jersey, and Oklahoma, and declined in the 44 others.

The Labor Department’s report Thursday suggests that layoffs, while still breathtakingly high, are steadily declining after sharp spikes in late March and early April. Initial claims for unemployment aid have now fallen for five straight weeks, from a peak of nearly 6.9 million during the week that ended March 28.

Applications for jobless aid rose in just six states last week, including Maine, New Jersey, and Oklahoma, and declined in the 44 others.

The report showed that 22.7 million people are now receiving unemployment aid — a rough measure of job losses since the shutdowns began. That figure lags a week behind the figures for first-time unemployment applications. And not everyone who applies for jobless aid is approved. The number of laid-off workers receiving aid is now equal to 15.5% of the workforce that’s eligible for unemployment benefits.

Those figures are a rough proxy for the job losses and for the unemployment rate that will be released Friday, which will likely to be the worst since modern record-keeping began after World War II. The unemployment rate is forecast to reach 16%, the highest rate since the Great Depression, and economists estimate that 21 million jobs were lost last month. If so, it would mean that nearly all the job growth in the 11 years since the Great Recession ended has vanished in a single month.

Even those stunning figures won’t fully capture the magnitude of the damage the coronavirus has inflicted on the job market. Many people who are still employed have had their hours reduced. Others have suffered pay cuts. Some who lost jobs in April and didn’t look for a new one in light of their bleak prospects won’t even be counted as unemployed. A broader measure — the proportion of adults with jobs — could hit a record low.

Layoffs Have Also Been More Concentrated Among the Less-Educated

The impact has fallen unevenly on the U.S. population, with Hispanics much more likely to suffer an economic hit. According to a survey in mid-April by The Associated Press-NORC Center for Public Affairs Research, 61% of Hispanics said their household has lost income because of the coronavirus, whether through a layoff, reduced hours or pay cuts. That compares with 46% of blacks and 43% of whites who said so.

Layoffs have also been more concentrated among the less-educated. Twenty-eight percent of Americans without college degrees say they’ve endured a layoff in their household, compared with 19% of people with college degrees.

The official figures for jobless claims may also be under-counting layoffs. Surveys by academic economists and think tanks suggest that as many as 12 million workers who were laid off by mid-April did not file for unemployment benefits by then, either because they couldn’t navigate their state’s overwhelmed systems or they felt too discouraged to try.

Economists are projecting that the gross domestic product — the broadest gauge of economic growth — is contracting in the current April-June quarter by a shocking 40% annual rate. As it does, more layoffs appear to be spreading beyond front-line industries like restaurants, hotels and retail stores.

GE Aviation, for example, has said it is cutting up to 13,000 jobs. Uber will shed 3,700 positions. MGM Resorts International has announced that the furloughs of more than 60,000 employees could turn into layoffs.

But the job cuts have hammered workers at restaurants, hotels and retail firms particularly hard. According to the payroll processor ADP, about half the total jobs in the hotel and restaurant industry — 8.6 million — disappeared in April, based on data from its corporate clients. A category that includes retail and shipping shed 3.4 million workers.

The Government Calculates Job Losses by Surveying Businesses and Households

The difference between the 30 million-plus unemployment claims that have been filed in the past several weeks and the expected April job loss of slightly more than 20 million reflects differences in how the figures are compiled.

The government calculates job losses by surveying businesses and households. It’s a net figure that also counts the hiring that some companies, like Amazon and many grocery stores, have done. By contrast, the total jobless claims are a cumulative figure; they include applications for unemployment aid that began in mid-March.

The government calculates job losses by surveying businesses and households. It’s a net figure that also counts the hiring that some companies, like Amazon and many grocery stores, have done. By contrast, the total jobless claims are a cumulative figure; they include applications for unemployment aid that began in mid-March.

In addition, the government conducts its surveys for the monthly jobs reports in the middle of each month. So layoffs from the final two weeks of April won’t show up in Friday’s jobs report. They will instead be included in the May jobs report to be released in early June.

After problems with state computer systems had slowed the distribution of federal benefits for many laid-off workers, all 50 states are now paying the $600 extra weekly benefit that the federal government included in a relief package enacted in late March. That represents a significant help to millions of laid-off workers, many of whom still remain anxious and uncertain.

Jamie Stewart is renting out a spare bedroom in her home to try to make ends meets after losing her job at a southwest Florida resort. Having applied for unemployment benefits in late March, she finally received her first payment of $1,200 this week. Stewart, a 37-year-old resident of Bonita Springs, works as a concierge in the off-season and as a shift manager and bartender in the resort’s restaurants.

After her layoff, she deferred her car payment for two months and cancelled non-necessities like Zoom, Pandora and Netflix. She recently signed up for food stamps, which cover about half her monthly grocery bill.

“My mental health has deteriorated to a point that I don’t recognize myself anymore,” she said. “My eyes are swollen and bloodshot all the time now from regular moments of weakness that leave me completely inconsolable.

“It looks like I have aged 10 years since the lockdown started.”

RELATED TOPICS:

DON'T MISS

Mayor Jerry Dyer Shares What Fresno Can Expect in 2025

DON'T MISS

Veterans Are Bright Spot in Dismal National Homelessness Report. What Can We Learn?

DON'T MISS

How Much Did Beyoncé Donate to LA Wildfire Relief?

DON'T MISS

Jeff Bezos’ Space Company Calls off Debut Launch in Final Minutes of Countdown

DON'T MISS

Valley Crime Stoppers’ Most Wanted Person of the Day: Marquis Dennis Roberts

DON'T MISS

Los Angeles Wildfire Deaths Rise to 24 as More Fierce Winds Are Forecast

DON'T MISS

Fresno County Fiery Crash Leaves Four Dead, Two Injured

DON'T MISS

Fresno Protesters Flood Streets, Demand End to Deportations

DON'T MISS

Fresno Hit-and-Run Collision Shuts Down Blackstone Avenue During Protest

DON'T MISS

Herbert’s Interceptions Doom Chargers in Playoff Loss to Texans

UP NEXT

Google to Track Every Device Starting February 16

UP NEXT

TikTok’s Fate Arrives at Supreme Court in Collision of Free Speech and National Security

UP NEXT

Riverside County Sheriff’s Deputy Dies in On-Duty Traffic Accident

UP NEXT

Italian Journalist Freed From Detention in Iran, Returns Home

UP NEXT

Washington Post Lays Off 4% of Its Workforce

UP NEXT

Jimmy Carter Will Be Honored in Washington, a City Where He Remained an Outsider

UP NEXT

Even MAGA Needs Immigrants, It Seems

UP NEXT

First US Bird Flu Death Is Announced in Louisiana

UP NEXT

The Jan. 6 Rioters, 4 Years Later

UP NEXT

Major US Winter Blast Shuts Down Schools and Government Offices in Several States

Jeff Bezos’ Space Company Calls off Debut Launch in Final Minutes of Countdown

2 hours ago

Valley Crime Stoppers’ Most Wanted Person of the Day: Marquis Dennis Roberts

2 hours ago

Los Angeles Wildfire Deaths Rise to 24 as More Fierce Winds Are Forecast

3 hours ago

Fresno County Fiery Crash Leaves Four Dead, Two Injured

3 hours ago

Fresno Protesters Flood Streets, Demand End to Deportations

20 hours ago

Fresno Hit-and-Run Collision Shuts Down Blackstone Avenue During Protest

21 hours ago

Herbert’s Interceptions Doom Chargers in Playoff Loss to Texans

1 day ago

NE Hires Former Patriots Super Bowl Champ Mike Vrabel as Coach

1 day ago

LA Wildfires Death Toll Rises to 16 as Crews Fight Heavy Winds

1 day ago

Life of Da Party: Snoop Dogg to Host NFL Honors Awards Show

1 day ago

Mayor Jerry Dyer Shares What Fresno Can Expect in 2025

Fresno Mayor Jerry Dyer shared his vision for 2025 at last week’s swearing-in ceremony at City Hall. Fresno City Council President Mik...

3 minutes ago

3 minutes ago

Mayor Jerry Dyer Shares What Fresno Can Expect in 2025

11 minutes ago

Veterans Are Bright Spot in Dismal National Homelessness Report. What Can We Learn?

Beyonce 2023 Grammy's
24 minutes ago

How Much Did Beyoncé Donate to LA Wildfire Relief?

Blue Origin's New Glenn rocket is seen on Launch Complex 36 shortly before the launch attempt was scrubbed at the Cape Canaveral Space Force Station, Monday, Jan. 13, 2025, in Cape Canaveral, Fla. (AP/John Raoux)
2 hours ago

Jeff Bezos’ Space Company Calls off Debut Launch in Final Minutes of Countdown

Authorities are seeking Marquis Dennis Roberts, 45, wanted on a no-bail felony warrant for false imprisonment by violence. (Valley Crime Stoppers)
2 hours ago

Valley Crime Stoppers’ Most Wanted Person of the Day: Marquis Dennis Roberts

Los Angeles Fire Department's Dylan Casey and Mike Alvarez work on extinguishing a hot spot in the aftermath of the Palisades Fire along the Pacific Coast Highway in Malibu, Calif., Sunday, Jan. 12, 2025. (Scott Strazzante/San Francisco Chronicle via AP)
3 hours ago

Los Angeles Wildfire Deaths Rise to 24 as More Fierce Winds Are Forecast

3 hours ago

Fresno County Fiery Crash Leaves Four Dead, Two Injured

Fresno protesters filled the streets on Sunday, waving flags and chanting against deportations, following a press conference revealing the detention of 78 people in recent local immigration operations.
20 hours ago

Fresno Protesters Flood Streets, Demand End to Deportations

Help continue the work that gets you the news that matters most.

Search

Send this to a friend