Budapest Post

Cum Deo pro Patria et Libertate
Budapest, Europe and world news

US workers seeking jobless aid near 40 million

US workers seeking jobless aid near 40 million

A further 2.4 million Americans sought unemployment benefits last week, despite hopes that easing lockdown restrictions would help restart the US economy.

The new filings brought the total since mid-March to roughly 38.6 million - almost a quarter of the workforce.

The weekly figures have declined since peaking at almost 6.9 million at the end of March but remain high.

The number of people remaining on benefits also continues to grow.

Treasury Secretary Steven Mnuchin warned this week that the US risked "permanent damage" if the lockdowns continued.

All 50 states in the US have started to reopen but it is not clear whether simply easing restrictions will prompt activity to rebound.

In the week ending 16 May, about 2.2 million people sought unemployment benefits under the government's pandemic relief programme, which expanded eligibility to people such as gig economy workers.

Their numbers, which are reported separately from the regular figures, are likely to grow as more states implement the programme.

"This is so tragic it is almost unfathomable," Diane Swonk, chief economist at Grant Thornton, wrote on Twitter.


Employers in the US cut more than 20 million jobs last month, sending the official unemployment rate to 14.7%, a sharp rise from 50-year lows of about 3.5% seen as recently as February.

Economists have warned that the rate is likely to worsen and remain elevated for several years.

While many of the unemployed said they believed their layoffs were temporary, a recent study estimated that more than 40% of recent pandemic job cuts are likely to be permanent.

Companies such as Uber are among the firms that have announced significant job cuts in recent weeks, as they prepare for a prolonged slowdown.

Retailers have also unveiled scores of permanent shop closures, with Victoria's Secret this week saying it would close some 250 locations in North America, with more expected.

"Overall there is little evidence that the reopening of the economy has, as yet, led to any sudden snap back in employment," said Paul Ashworth, chief US economist at Capital Economics.

Nearly half of US households have lost income since the pandemic lockdowns came into effect two months ago, according to a survey published Wednesday by the US Census. About 37% expect to lose income in the next month.

The effect on spending - which powers the US economy - has already been felt, with retail sales falling a record 16.4% in April, the Commerce Department reported last week.

AI Disclaimer: An advanced artificial intelligence (AI) system generated the content of this page on its own. This innovative technology conducts extensive research from a variety of reliable sources, performs rigorous fact-checking and verification, cleans up and balances biased or manipulated content, and presents a minimal factual summary that is just enough yet essential for you to function as an informed and educated citizen. Please keep in mind, however, that this system is an evolving technology, and as a result, the article may contain accidental inaccuracies or errors. We urge you to help us improve our site by reporting any inaccuracies you find using the "Contact Us" link at the bottom of this page. Your helpful feedback helps us improve our system and deliver more precise content. When you find an article of interest here, please look for the full and extensive coverage of this topic in traditional news sources, as they are written by professional journalists that we try to support, not replace. We appreciate your understanding and assistance.
Newsletter

Related Articles

0:00
0:00
Close
Vatican hosts first Catholic LGBTQ pilgrimage
Apple Unveils iPhone 17 Series, iPhone Air, Apple Watch 11 and More at 'Awe Dropping' Event
France joins Eurozone’s ‘periphery’ as turmoil deepens, say investors
France Faces New Political Crisis, again, as Prime Minister Bayrou Pushed Out
Nayib Bukele Points Out Belgian Hypocrisy as Brussels Considers Sending Army into the Streets
France, at an Impasse, Heads Toward Another Government Collapse
The Country That Got Too Rich? Public Spending Dominates Norway Election
EU Proposes Phasing Out Russian Oil and Gas by End of 2027 to End Energy Dependence
More Than 150,000 Followers for a Fictional Character: The New Influencers Are AI Creations
EU Prepares for War
Trump Threatens Retaliatory Tariffs After EU Imposes €2.95 Billion Fine on Google
Tesla Board Proposes Unprecedented One-Trillion-Dollar Performance Package for Elon Musk
Gold Could Reach Nearly $5,000 if Fed Independence Is Undermined, Goldman Sachs Warns
Uruguay, Colombia and Paraguay Secure Places at 2026 World Cup
Trump Administration Advances Plans to Rebrand Pentagon as Department of War Instead of the Fake Term Department of Defense
Big Tech Executives Laud Trump at White House Dinner, Unveil Massive U.S. Investments
Tether Expands into Gold Sector with Profit-Driven Diversification
‘Looks Like a Wig’: Online Users Express Concern Over Kate Middleton
Florida’s Vaccine Revolution: DeSantis Declares War on Mandates
Trump’s New War – and the ‘Drug Tyrant’ Fearing Invasion: ‘1,200 Missiles Aimed at Us’
"The Situation Has Never Been This Bad": The Fall of PepsiCo
At the Parade in China: Laser Weapons, 'Eagle Strike,' and a Missile Capable of 'Striking Anywhere in the World'
The Fashion Designer Who Became an Italian Symbol: Giorgio Armani Has Died at 91
Putin Celebrates ‘Unprecedentedly High’ Ties with China as Gazprom Seals Power of Siberia-2 Deal
China Unveils New Weapons in Grand Military Parade as Xi Hosts Putin and Kim
Rapper Cardi B Cleared of Liability in Los Angeles Civil Assault Trial
Google Avoids Break-Up in U.S. Antitrust Case as Stocks Rise
Couple celebrates 80th wedding anniversary at assisted living facility in Lancaster
Information Warfare in the Age of AI: How Language Models Become Targets and Tools
The White House on LinkedIn Has Changed Their Profile Picture to Donald Trump
"Insulted the Prophet Muhammad": Woman Burned Alive by Angry Mob in Niger State, Nigeria
Trump Responds to Death Rumors – Announces 'Missile City'
Druzhba Pipeline Incident Sparks Geopolitical Tensions
Cost of Opposition Leader Péter Magyar's Economic Plan Revealed
Germany in Turmoil: Ukrainian Teenage Girl Pushed to Death by Illegal Iraqi Migrant
United Krack down on human rights: Graham Linehan Arrested at Heathrow Over Three X Posts, Hospitalised, Released on Bail with Posting Ban
Asian and Middle Eastern Investors Avoid US Markets
Ray Dalio Warns of US Shift to Autocracy
Eurozone Inflation Rises to 2.1% in August
Russia and China Sign New Gas Pipeline Deal
Von der Leyen's Plane Hit by Suspected Russian GPS Interference in an Incident Believed to Be Caused by Russia or by Pro-Peace or by Anti-Corruption European Activists
China's Robotics Industry Fuels Export Surge
Suntory Chairman Resigns After Police Probe
Gold Price Hits New All-Time Record
UK Fintechs Explore Buying US Banks
Greece Suspends 5% of Schools as Birth Rate Drops
Apollo to Launch $5 Billion Sports Investment Vehicle
Bolsonaro Trial Nears Close Amid US-Brazil Tension
European Banks Push for Lower Cross-Border Barriers
Poland's Offshore Wind Sector Attracts Investors
×