Wednesday, May 11, 2022
Latest News from Cambridge and England

Coronavirus: US weekly jobless claims hit 6.6 million

The number of Americans seeking unemployment benefits has surged for a third week as the economic to..

By admin , in Women , at April 9, 2020

The number of Americans seeking unemployment benefits has surged for a third week as the economic toll tied to the coronavirus pandemic intensifies.

More than 6.6 million people filed jobless claims in the week ending 4 April, the Department of Labor said.

To shore up the economy, the Federal Reserve said it would unleash an additional $2.3tn in lending.

The deepening economic crisis comes as the number of virus cases in the US soars to more than 430,000.

Over the last three weeks, more than 16 million people have made unemployment claims, as restrictions on activity to help contain the virus force most businesses to close and put about 95% of Americans on some form of lockdown.

"Today's report continues to reflect the personal sacrifice being made by America's workers and their families to slow the spread of the coronavirus," Labor Secretary Eugene Scalia said.

The surging joblessness is a stark reversal for the world's biggest economy where the unemployment rate had been hovering around 3.5%. Economists now expect that rate has hit the double digits.

The crisis has prompted dramatic government relief efforts.

The central bank programmes on Thursday, which include loans to local governments, are the latest actions by the Fed, which has also slashed interest rates, eased banking regulations and announced other programmes aimed at supporting home loans, currency markets and small businesses.

Fed Chairman Jerome Powell said the bank is using its emergency powers to "unprecedented extent".

"We will continue to use these powers forcefully, proactively and aggressively until we're solidly on the way to recovery," he said.

The US Congress has also passed a roughly $2tn rescue bill, which funds direct payment for households, assistance for businesses and increased unemployment benefits. Lawmakers are now discussing further relief.

But the number of people and firms seeking assistance has overwhelmed rescue efforts so far.

In New York, Lou Benavides, who works in the music industry, has tried for weeks to register for jobless benefits, but cannot reach the Labor Department to finish processing his claim.

"There was one day when I made like 300 calls," he said. "I still have not spoken to a human being."

'Soften the shock'

The shutdowns due to the coronavirus have now affected a majority of the roughly 21 million jobs US employers have added since recovery from the financial crisis started in 2010.

While the 6.6 million jobless claims filed in the US in the week to 4 April is actually a slight dip from the 6.8 million registered the week before, economists warn that the elevated figures are likely to continue.

"The stimulus fromRead More – Source