According to the Bureau of Labour Statistics’ monthly report, America has lost more than 20 million jobs in April itself, increasing the unemployment rate to 14.7%. But estimations for the May unemployment rate are even higher. Millions of Americans are dependent on the unemployment benefits for their living after losing their jobs to the coronavirus crisis.
The total number of first-time applicants to 36.5 million since mid-March. That represents 22.4% of the March labour force. America’s labour force shrank in April as the cases increased and the conditions worsened.
Last week’s claims increased economic tensions among the states. Economists’ consensus expectations were raised by 500,000 after seeing the increasing number of job losses. It was the eighth week in a row that the number of initial claims decreased after hiking at 6.9 million filed in the final week of March. Economists say this is relatively good news as it means the relief amount are heading into the right hands. Economists are hoping that the numbers will be reduced in the coming week.
Also, repeatedly people are applying for the claims as they have lost the jobs and savings during the outbreak. Economists are shifting their focus on to continuing jobless claims, which count people who are filing multiple weeks in a row to sort the matter out for them.
A decrease in continuing claims could be a signal that the reviving of the economy is successful in employing people who lost their jobs from the lockdown are re-entering the labour market as the states are imposing relaxations from the restrictions.
Spending on unemployment benefits has risen to more than $100 billion so far this fiscal year, a huge jump which can be threat for the economy as well as their leading currency dollar. In April, the federal government paid out nearly $27 billion in unemployment benefits as the money from Congress’ historic enhancement to the program started to flow.