Unemployment Claims Peak At 3.3 Million Claims, Highest The Country Has Ever Seen
On Thursday, the Labor Department reported that the number of unemployment claims has risen to 3.28 million.
Economists were expecting a massive hike, but they never expected these numbers.
Randy Frederick, VP of trading and derivatives at Charles Schwab told CNBC that this surge was “way bigger” than predicted.
This wave of filed claims is the highest we’ve seen in American History. During the Great Recession, claims peaked at 665,00 in March 2009 and in October 1982, 695,000.
And that 3.28 million will rise as non-essential businesses continue to close across the country and governors put their cites and states on lockdown.
The Senate’s 2 trillion plan includes a $1,200 payment to Americans, which won’t be a drop in the bucket for single Americans, let alone American families.
According to Republican Leader and Representative of California’s 23rd District, Kevin McCarthy, the bills include four months of unemployment insurance and forgiveness for small business loans.
Early Thursday, Federal Reserve Chairman Jerome Powell told NBC’s “TODAY” that we can expect a bounce back after the virus has plateaued.
“At that time, confidence will return, businesses will open again, people will come back to work,” said Powell. “So you may well see a significant rise in unemployment, a significant decline in economic activity. But there can also be a good rebound on the other side of that.”
But certain industries might not recover so quickly. @AngosturaCat on Twitter pointed out that in a society that will be focused on “basic needs” what will happen to the artists?
Shit is getting real for artists. When unemployment jumps, we’re immediately unemployed. Artisans are the first to go in a society of “needs”.— 🍋Bitters🍋 is raising money for vet bills (@AngosturaCat) March 26, 2020
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A shrink in the hospitality and travel business may also create a rise in unemployment. While some Americans will return to work, the economy will affect these airlines, hospitality and food businesses – which means they won’t be quick to fill their staff.
Chip Rogers, president, and CEO of the American Hotel & Lodging Association confirmed the huge hit to the hotel industry in a conversation with MarketWatch.
“Hotels have already lost $1.5 billion in room revenue, which equates to one million jobs that have or will be eliminated,” he said.
The longterm effects are still playing out, but we know things won’t be the same after we get through this.
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