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U.S. jobless claims skyrocket to 3.2 million as coronavirus hits the economy

26 Mars, 2020, 18:21 | Auteur: Auguste Feret
  • New York. Applications for jobless benefits are surging in some states as coronavirus concerns shake the U.S. economy. T

It's bad: Based on state data, Morgan Stanley thinks the U.S. government could announce Thursday that 3.4 million people filed for their first week of unemployment benefits last week.

Previously, the highest increase in unemployment claims came in October of 1982, when the Department of Labor saw an increase of 695,000 unemployment claims.

As the coronavirus continues to devastate the global economy, job numbers in America show that unemployment skyrocketed up to record numbers last week.

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The enormous jump is due to the wave of layoffs across the country associated with the coronavirus outbreak. The jaw-dropping figure eclipses the previous weekly jobless claim record of 695,000 in October 1982.

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Schools have been shut down and workers have been ordered home in multiple states. As the Department of Labor put it, "Nearly every state providing comments cited the COVID-19 virus impacts".

And as James Knightley, chief worldwide economist for ING, pointed out, the states reporting the greatest numbers of new jobless claims in the Labor Department's report misalign with anecdotal evidence and state-reported data coming out over the past week.

In California alone, more than a million people have applied for unemployment benefits this month, Gov. Gavin Newsom said Wednesday.

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