Jobless Rate Soars! 3.3 Million Americans File Unemployment Claims This Week

3.3 million Americans filed unemployment claims last week.  This is more than quadruple the previous record. This comes after mandat...

3.3 million Americans filed unemployment claims last week. 

This is more than quadruple the previous record.

This comes after mandatory business shutdowns occurred in several states due to the coronavirus.

The AP reported:

The US jobless rate soared this week with 3.3 million Americans filing unemployment claims.

Nearly 3.3 million Americans applied for unemployment benefits last week — more than quadruple the previous record set in 1982 — amid a widespread economic shutdown caused by the coronavirus.

The surge in weekly applications was a stunning reflection of the damage the viral outbreak is doing to the economy. Filings for unemployment aid generally reflect the pace of layoffs. So the latest figures suggest that roughly x% of America’s workforce was laid off just through the week that ended March 21. That is the highest proportion on records dating to 1971.

The pace of layoffs is sure to accelerate as the U.S. economy sinks into a recession. Revenue has collapsed at restaurants, hotels, movie theaters, gyms, and airlines. Auto sales are plummeting, and car makers have close factories. Most such employers face loan payments and other fixed costs, so they’re cutting jobs to save money.