- COVID-19: 16.8m Americans File for Unemployment Benefits in 3 Weeks
Global pandemic continues to hurt American jobs as more than 6 million people filed for unemployment benefits for a second straight week.
According to the Labor Department, the number of Americans that filed for unemployment benefits in the week ended April 4th rose to 6.606 million while the number for the previous week was revised up by 219,000 to take the total number to 6.867 million.
Therefore, bringing the total number of people that have filed for unemployment benefits since the week ended March 21 to 16.78 million, the highest in the history of the United States.
“In its first month alone, the coronavirus crisis is poised to exceed any comparison to the Great Recession,” said Daniel Zhao, senior economist at Glassdoor, a website recruitment firm. “The new normal for unemployment insurance claims will be the canary in the coal mine for how long effects of the crisis will linger for the millions of newly unemployed Americans.”
The United States on Thursday reported almost 2,000 deaths due to the coronavirus pandemic for a second straight day to take the total number of deaths to 14,695, more than Spain but below Italy.
The uncertainty surrounding the fast-spreading virus continued to impact the US economic outlook as investors remain wary of the damage being done to the world’s largest economy.
“Today’s report continues to reflect the purposeful sacrifice being made by America’s workers and their families to slow the spread of the coronavirus,” said Labor Secretary Eugene Scalia in a statement.
However, the $2.3 trillion stimulus announced by the Federal Reserves on Thursday could help contain the impact of the virus and stimulate growth.
The Fed Chair, Jerome Powell, in a statement released on Thursday said: “Our country’s highest priority must be to address this public health crisis, providing care for the ill and limiting the further spread of the virus.”
“The Fed’s role is to provide as much relief and stability as we can during this period of constrained economic activity, and our actions today will help ensure that the eventual recovery is as vigorous as possible.”
Despite the rising number of deaths, the S&P 500 rose by 11 percent in a sign that investors embraced the new stimulus package, especially after reports pointed to a slowing rate of spread.
