For the last reporting period the number of new applications for unemployment benefits amounted to 3 million people. Thus, the total number of people who have lost their jobs because of the pandemic, reached 36.5 million this writes CNBC.
2,981 million new applications for unemployment benefits filed last week (may 4-10), led to a total of almost 36.5 million unemployed, the highest figure in the history of the United States. While the weekly level, the loss of jobs is reduced before the number of new applications for unemployment benefits each week have exceeded 3 million people, and in April was two weeks, when this figure exceeded 6 million.
Economists surveyed by Dow Jones had expected may 4-10, the number of new applications will be 2.7 million But they underestimated the seriousness of the situation. Futures stock markets fell following the report and pointed to another losing day for wall street.
Despite the fact that after the peak on March 28, the number of applications for unemployment benefits reduced loss of work due to quarantine continues to be an urgent problem in the US, even on the background of the careful removal of restrictions in some States.
The labor Department reported a loss of 20.5 million jobs in April, which led to the unemployment rate at 14.7% — the highest since the Second world war.
“These figures are alarming, but in the coming months is expected to lift restrictions, and the unemployment rate needs to fall,” said Peter Boockvar, Director of investments Bleakley Advisory Group.
Those who were dismissed because of a pandemic coronavirus infection, had to go the hard way through a difficult maze of government agencies can not cope with such a large number of applications for unemployment benefits.
May 4-10, the sharpest rise in unemployment occurred in Connecticut, where it was 262 542 new applications. In most other States, there was a decrease in adjusted numbers, the largest decline occurred in Texas (-102,263) and California (-102,229).
The insured unemployment rate, which is determined by calculating the ratio of the number of applications for unemployment benefits and the labour force increased by 0.3 percentage points to 15.7%.
Despite the fact that the overall rate remains high, most economists expect the employment picture is slightly improved, because more and more States are starting to ease the restrictions.
“Since most States have only begun to ease the quarantine in the last 10 days, we expect in the coming time, the much larger fluctuations of employment, and this suggests that the unemployment rate will begin to decline,” said Paul Ashworth, chief economist at Capital Economics.