https://www.forbes.com/sites/sarahhansen/2020/04/02/the-us-has-now-lost-nearly-10-million-jobs-because-of-coronavirus/#799f4ddf1b5cAmericans Have Lost 10 Million Jobs Because Of Coronavirus
Sarah Hansen
Sarah HansenForbes Staff
Markets
US-STOCKS-MARKETS-OPEN
“The speed and magnitude of the labor market’s decline is unprecedented."
AFP via Getty Images
(Updated 8:44 a.m. ET, April 2, 2020)
Topline: Weekly jobless claims surged to a staggering 6.65 million, more than double the 3.1 million expected, for the week ending March 28 as the coronavirus continues batter the American economy—it’s the highest level ever recorded.
•Weekly jobless claims are a measure of how many people seek temporary unemployment benefits in a given week.
•For the week ending March 21, unemployment claims soared to 3.28 million, versus 1.5 million expected.
•Before the current crisis, the most weekly claims every recorded was 695,000 in 1982. In March 2009, during the height of the financial crisis, claims reached 665,000.
•U.S. private companies cut 27,000 jobs last month, according to ADP’s National Employment Report; this was before the worst of the coronavirus slowdown hit the U.S. economy.
•All of those losses came from small businesses (those with fewer than 50 employees), which cut 90,000 jobs; medium and large businesses added a cumulative total of 63,000 jobs.
Big number: 6.6 million weekly claims means that 2% of the entire U.S. population filed for unemployment last week.
Crucial quote: “The speed and magnitude of the labor market’s decline is unprecedented,” Constance Hunter, chief economist at KPMG LLP, told the Wall Street Journal.
Key background: As the coronavirus pandemic batters markets, closes schools, suspends major conferences and sports leagues and upends the travel industry, businesses have begun laying off workers in earnest. The latest: cosmetics retailer Sephora let go of some part-time and seasonal workers in its U.S. business; Canadian corporate employees are working reduced hours.
Surprising fact: A host of companies have said they won’t make any layoffs during the coronavirus outbreak—most recently on Tuesday, both Bank of America BAC and PayPal PYPL pledged not to do so.
What to watch for: The March jobs report will be released by the Labor Department tomorrow.
