Push Admin

Grim and getting worse: US set for historic unemployment surge

Article (news)

Heather Scott, Agence France-Presse

<div class="embed-wrap"><figure data-feedback="fb:likes,fb:comments"><img src="https://sa.kapamilya.com/absnews/abscbnnews/media/2020/reuters/04/24/20200423-health-coronavirus-debt-secured.jpg"/><figcaption>A nearly deserted Wall Street and the steps of Federal Hall are seen in lower Manhattan during the outbreak of the coronavirus disease in New York City, New York, US, April 3, 2020. Mike Segar, Reuters/File</figcaption></figure></div>WASHINGTON - Like a global tsunami, the coronavirus pandemic has caused a huge loss of life and taken a massive economic toll. In the US economy, skyrocketing unemployment is the most visible sign of the devastation: almost overnight, at least 30 million workers lost their jobs.<ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/business/05/01/20/us-unemployment-claims-top-30-million">U.S. unemployment claims top 30 million</a></li></ul>The April employment report, due out Friday, is expected to show the unemployment rate soaring into double digits, perhaps as high as 20 percent, far surpassing the worst of the global financial crisis and reaching levels not seen since the Great Depression last century.The US government and central bank worked at a stunning pace to rush out aid and financing to workers and businesses to try to prevent a complete economic collapse, but there is a growing fear that the temporary shutdowns imposed to contain the spread of the virus will become permanent for many companies.The coronavirus has infected nearly 1.2 million people in the United States and killed around 70,000, according to a count from Johns Hopkins University, and analysts fear some of the economic damage may be permanent.&quot;We took the elevator down, but we&#x27;re going to need to take the stairs back up,&quot; Tom Barkin, president of the Federal Reserve Bank of Richmond, said in a recent speech.Despite nearly $3 trillion in financial aid approved by Congress in March alone and trillions more in liquidity provided by the Federal Reserve, the US economy contracted by 4.8 percent in the first three months of the year -- a period that included only a couple of weeks of the strict business shutdowns.The second quarter could see the economy plunge by twice that amount.<ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/overseas/04/02/20/coronavirus-drives-665-million-to-file-for-us-jobless-benefits">Coronavirus drives 6.65 million to file for US jobless benefits</a></li></ul><div>THE WORST IS YET TO COME</div>The data on the jobs market has become so bad so fast that there are no comparisons.Statisticians in the Labor Department&#x27;s Bureau of Labor Statistics (BLS), which produces the monthly unemployment report, are using natural disasters as a point of reference.&quot;The closest that we have in terms of what was in our playbook has been usually hurricanes, because they tend to be large and impact significant periods of time, or areas,&quot; BLS Associate Commissioner Julie Hatch Maxfield told AFP.But even devastating events, like Hurricane Katrina in 2005, were regional -- not national and certainly not global.<ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/overseas/04/28/20/1-in-3-americans-found-losing-work-income-due-to-coronavirus">1 in 3 Americans found losing work, income due to coronavirus</a></li></ul>The job losses spread from airlines and hotels to restaurants and factories as states ordered lockdowns and then closed schools, sending initial claims for unemployment insurance surging from mid-March, with 20 million posted in the four weeks of April alone.But those figures could underestimate the true size of the shock, since many people have not been able to file for benefits, and others do not qualify.The official unemployment rate in March jumped from a historic low of 3.5 percent to 4.4 percent, with 701,000 jobs lost.But the monthly data, which are separate from the jobless claims reports, are calculated only during the pay period that includes the 12th day of each month, so they too missed the real picture. BLS said the survey of households likely underestimated the jobless rate, which should have been 5.4 percent.April will be far worse, with some economists projecting jobs losses at 28 million and a 17 percent unemployment rate. And as more businesses report their data, job losses in March are expected to be revised higher as well.<div>FALSE REBOUND, SLOW COMEBACK</div>By comparison, job losses during the global financial crisis in 2008 and 2009 totaled 8.6 million and the unemployment rate peaked at 10 percent.Even among workers who are still employed, many have seen their hours cut. Economists also fear the gains made during the economic expansion from 2009 in incorporating more minorities into the workforce are being eroded.&quot;It&#x27;s now clear the economy was in a downdraft much more rapidly than anyone expected,&quot; Diane Swonk, chief economist at Grant Thornton, told AFP.The expansive government aid programs mean the US might see a temporary pickup in hiring in May and June, Swonk said.But if small businesses aren&#x27;t fully back to normal by July, which will be determined by whether consumers feel safe enough to go back to restaurants and shops, &quot;they&#x27;re going to have to lay them off again,&quot; she said.Last week, Federal Reserve Chair Jerome Powell warned about the lingering damage caused by the temporary shutdowns and said it &quot;will take some time for us to get back to a more normal level of unemployment.&quot;<ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/business/03/26/20/jobs-business-liquidity-how-the-us-is-preparing-for-recession-due-to-coronavirus">Jobs, business, liquidity: How the US is preparing for recession due to coronavirus</a></li></ul>

In the US economy, skyrocketing unemployment is the most visible sign of the devastation: almost overnight, at least 30 million workers lost their jobs.

In the US economy, skyrocketing unemployment is the most visible sign of the devastation: almost overnight, at least 30 million workers lost their jobs.

Grim and getting worse: US set for historic unemployment surge

News

Entertainment

Lifestyle

Sports

Metro.Style

More

Traffic

Manila

Horoscope

Business

Grim and getting worse: US set for historic unemployment surge

Heather Scott,

Agence France-Presse

Published May 06, 2020 12:56 PM PHT

Read More:

unemployment

pandemic

COVID-19

coronavirus

US

United States

job loss

labor

US lockdown

ABS-CBN is the leading media and entertainment company in the Philippines, offering quality content across TV, radio, digital, and film. Committed to public service and promoting Filipino values, ABS-CBN continues to inspire and connect audiences worldwide.

Corporate

Investors

Governance

International Distribution

Corporate

Governance

Investors

International Distribution

NPC Seal of Registration

Privacy Policy

AI Policy

Terms of Service

Advertise with Us

© 2025 ABS-CBN Corporation. All Rights Reserved.

NPC Seal of Registration

Privacy Policy

Terms of Service

AI Policy

Advertise with Us

© 2025 ABS-CBN Corporation. All Rights Reserved.

NPC Seal of Registration

Privacy Policy

Terms of Service

AI Policy

Advertise with Us

© 2025 ABS-CBN Corporation. All Rights Reserved.