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 4 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

Coalition: CA Lawmakers Need to Roll Back Proposed ‘Utility Tax’

DON'T MISS

CA’s High Construction Costs Limit Housing. A Supreme Court Decision Might Help

DON'T MISS

Now’s the Time to Register for FUSD’s Free Preschool and T-K

DON'T MISS

‘Hopeville’ Literacy Documentary Showing Tonight at Roosevelt High

DON'T MISS

Michigan Faces Probation for Football Recruiting Violations; Case vs. Jim Harbaugh Pending

DON'T MISS

What Winnie the Pooh and Mickey Mouse Can Tell Us About the Public Domain and Remix Culture

DON'T MISS

Acquisition of Historic Fresno Real Estate Brand Creates Area’s Largest Brokerage

DON'T MISS

Wall Street’s Mixed Trading Day

DON'T MISS

It’s ‘Signing Day’ for These Clovis Unified Youngsters

DON'T MISS

Clovis Armed Robbery and Pursuit Result in 3 Arrests, 1 Suspect Still at Large

UP NEXT

New Recruiting Programs Put Army, Air Force on Track to Meet Enlistment Goals. Navy Will Fall Short

UP NEXT

Justice Thomas Misses Supreme Court Session Monday With No Explanation

UP NEXT

‘Civil War’ Declares Victory at the Box Office, Toppling ‘Godzilla X Kong’

UP NEXT

Scheffler Turns the Masters Into Another Sunday Yawner With a Dominating Win

UP NEXT

Vegas, US Tour and More Signings: Wrexham Has Plenty of Fun and Work Ahead After Latest Promotion

UP NEXT

NBA Play-in Game Preview: West Games on Tuesday, East Games on Wednesday, Eliminations on Friday

UP NEXT

Ship That Caused Bridge Collapse Had Apparent Electrical Issues While Still Docked, Source Says

UP NEXT

US Shoots Down Iran-Launched Attack Drones as Biden Team Pledges ‘Support’ for Israel

UP NEXT

Reacher Star Alan Ritchson Calls Donald Trump a ‘Rapist’

UP NEXT

US Intelligence Finding Shows China Surging Equipment Sales to Russia to Help War Effort in Ukraine

‘Hopeville’ Literacy Documentary Showing Tonight at Roosevelt High

Local Education /

3 hours ago

Michigan Faces Probation for Football Recruiting Violations; Case vs. Jim Harbaugh Pending

4 hours ago

What Winnie the Pooh and Mickey Mouse Can Tell Us About the Public Domain and Remix Culture

4 hours ago

Acquisition of Historic Fresno Real Estate Brand Creates Area’s Largest Brokerage

Breaking News /

4 hours ago

Wall Street’s Mixed Trading Day

4 hours ago

It’s ‘Signing Day’ for These Clovis Unified Youngsters

Local Education /

4 hours ago

Clovis Armed Robbery and Pursuit Result in 3 Arrests, 1 Suspect Still at Large

4 hours ago

Charges Against Trump and Jan. 6 Rioters at Stake as Supreme Court Hears Debate Over Obstruction Law

5 hours ago

Fresno Fire and Police Ramp up Probe Into Fires at Cemeteries

5 hours ago

New Recruiting Programs Put Army, Air Force on Track to Meet Enlistment Goals. Navy Will Fall Short

5 hours ago

Coalition: CA Lawmakers Need to Roll Back Proposed ‘Utility Tax’

A proposal to levy a fixed charge on customers of California’s big investor-owned utilities will harm low-income households, further l...

58 mins ago

58 mins ago

Coalition: CA Lawmakers Need to Roll Back Proposed ‘Utility Tax’

2 hours ago

CA’s High Construction Costs Limit Housing. A Supreme Court Decision Might Help

Local Education /
3 hours ago

Now’s the Time to Register for FUSD’s Free Preschool and T-K

Local Education /
3 hours ago

‘Hopeville’ Literacy Documentary Showing Tonight at Roosevelt High

4 hours ago

Michigan Faces Probation for Football Recruiting Violations; Case vs. Jim Harbaugh Pending

4 hours ago

What Winnie the Pooh and Mickey Mouse Can Tell Us About the Public Domain and Remix Culture

Breaking News /
4 hours ago

Acquisition of Historic Fresno Real Estate Brand Creates Area’s Largest Brokerage

4 hours ago

Wall Street’s Mixed Trading Day

MENU

CONNECT WITH US

Search

Send this to a friend