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

What Are Fresno Real Estate Experts Predicting for 2025 and Beyond?

DON'T MISS

First California EV Mandates Hit Automakers This Year. Most Are Not Even Close

DON'T MISS

Fresno Unified Substitute Teacher Arrested in Online Child Exploitation Case

DON'T MISS

Investors Buy Fig Garden Village. How Much Did It Sell For?

DON'T MISS

Fresno County DA Wants Teens Tried as Adults in Caleb Quick Murder

DON'T MISS

State Farm Wins First-Ever Emergency Rate Hike in California

DON'T MISS

Work Permits Reinstated for UC Merced International Students, Anxiety Persists

DON'T MISS

Tatum to Miss Remainder of Playoffs After Achilles Tendon Surgery

DON'T MISS

Fresno Police Seek Public’s Help Identifying Shooting Suspect

DON'T MISS

MLB Reinstates Pete Rose and Shoeless Joe Jackson, Making Them Hall of Fame Eligible

DON'T MISS

Karbassi Running for Fresno County Elections Clerk, Says He Can ‘Do Better’

DON'T MISS

Global Eggs Completes Acquisition in US, Closes New Deal in Europe

UP NEXT

Cassie Testifies in Sean ‘Diddy’ Combs Sex Trafficking Trial. What to Know About the Star Witness

UP NEXT

Jayson Tatum Carried off Floor With Right Leg Injury and Celtics Star Will Have MRI

UP NEXT

Dallas Mavericks Win the NBA Draft Lottery, Eye Cooper Flagg for No. 1 Pick

UP NEXT

US Inflation Stable Before Expected Jump From Tariffs

UP NEXT

Trump Plans to Accept Luxury 747 From Qatar to Use as Air Force One

UP NEXT

‘The Studio’ Knows the Real Reason Movies Are Bad

UP NEXT

India and Pakistan Agree to a Ceasefire After Their Worst Military Escalation in Decades

UP NEXT

Ukraine and Allies Urge Putin to Commit to a 30-Day Ceasefire or Face New Sanctions

UP NEXT

Israeli Airstrikes Kill 23 in Gaza as Outcry Over Aid Blockade Grows

UP NEXT

Experts Call Kennedy’s Plan to find Autism’s Cause Unrealistic

State Farm Wins First-Ever Emergency Rate Hike in California

10 hours ago

Work Permits Reinstated for UC Merced International Students, Anxiety Persists

11 hours ago

Tatum to Miss Remainder of Playoffs After Achilles Tendon Surgery

11 hours ago

Fresno Police Seek Public’s Help Identifying Shooting Suspect

11 hours ago

MLB Reinstates Pete Rose and Shoeless Joe Jackson, Making Them Hall of Fame Eligible

11 hours ago

Karbassi Running for Fresno County Elections Clerk, Says He Can ‘Do Better’

12 hours ago

Global Eggs Completes Acquisition in US, Closes New Deal in Europe

13 hours ago

‘I Never Said He Called My Son the N-Word.’ Fresno Unified Trustee Thomas Tries to Erase Accusation Against Former Bullard Coach

14 hours ago

UnitedHealth Group CEO Steps Down as Company Lowers, Then Withdraws Financial Outlook for 2025

15 hours ago

FDA and RFK Jr. Aim to Remove Ingestible Fluoride Products Used to Protect Kids’ Teeth

15 hours ago

Fresno Unified Substitute Teacher Arrested in Online Child Exploitation Case

A 43-year-old Fresno man identified as a certified substitute teacher with the Fresno Unified School District has been arrested for allegedl...

6 hours ago

https://www.communitymedical.org/thecause?utm_source=Misfit+Digital&utm_medium=GVWire+Banner+Ads&utm_campaign=Branding+2025&utm_content=thecause
Carlos Gonzalez, 43, of Fresno, a substitute teacher at Fresno Unified School District has been arrested for allegedly attempting to meet a minor for sex after contacting the child through a messaging app, prompting authorities to urge potential victims to come forward. (Fresno County SO)
6 hours ago

Fresno Unified Substitute Teacher Arrested in Online Child Exploitation Case

9 hours ago

Investors Buy Fig Garden Village. How Much Did It Sell For?

Fresno clovis caleb quick
10 hours ago

Fresno County DA Wants Teens Tried as Adults in Caleb Quick Murder

10 hours ago

State Farm Wins First-Ever Emergency Rate Hike in California

11 hours ago

Work Permits Reinstated for UC Merced International Students, Anxiety Persists

11 hours ago

Tatum to Miss Remainder of Playoffs After Achilles Tendon Surgery

Fresno police are seeking help identifying a suspect caught on video after a shooting near First Street and Belmont Avenue left one person injured on Sunday. May 11, 2025. (Fresno PD)
11 hours ago

Fresno Police Seek Public’s Help Identifying Shooting Suspect

11 hours ago

MLB Reinstates Pete Rose and Shoeless Joe Jackson, Making Them Hall of Fame Eligible

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

Search

Send this to a friend