Strict restrictions related to preventing the spread of the coronavirus have almost blocked the country, triggering a wave of cuts that likely end the longest-running U.S. employment boom, Reuters notes.
The weekly number of applications reported by the Labour Ministry today presents the clearest evidence of the destructive effects of the coronavirus on the economy. The pandemic prompted the Federal Reserve Management (UFR) to take emergency measures, and the US Congress drafted a $2 trillion economic stimulus package.
Economists say the economy is already in recession. Weekly applications for unemployment benefits are the most timely indicator of the state of the labour market.
Primary applications for unemployment benefit rose by 3,001,000 to 3.28 million with seasonal factors in the week ended March 21. The previous record was from 1982 - 695,000, the Labor Ministry noted.
Economists polled by Reuters predicted the benchmark would be at the level of one million, but there were also estimates of 4 million.
The Labor Ministry explains the sharp jump with Covid-19, the respiratory disease caused by the coronavirus.
In just a week: 3.28 million Americans unemployed because of coronavirus
The number of Americans who applied for unemployment benefits jumped to a record above 3 million last week, news agencies reported, BTA reports.tags:
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