US jobless claims rise to 36 million since the start of lockdowns

• 2020-05-15
• Traiding Idea

US jobless claims rise to 36 million since the start of lockdowns

The number of Americans seeking unemployment benefits for the eighth consecutive week remained in the millions as the economy continued to reel from the Covid-19 pandemic.

US Department of Labor figures shows that the number of people applying for unemployment benefits rose to 2.98 million in the week ended May 9. That figure was 3.18 million the week before.

Economists estimate that the unemployment rate in the United States is 2.5 million. The latest figures show that since the closure of businesses in mid-March, about 36.5 million applications for unemployment insurance have been filed. This is equal to the total number of applications filed during the previous 18-month recession.

The demand for unemployment insurance in the United States continues, and the total number of Americans currently receiving these benefits has risen to 22.8 million in the week ended May 2.

The US unemployment rate is worse than expected, indicating the devastating effects of the Coronavirus pandemic on the US economy. 

This high figure is the result of the closure of restaurants and retailers and Americans staying home for fear of contracting the coronavirus.

Federal Reserve Chairman Jerome Powell outlined a more troubling economic scenario that is likely to lead to mass bankruptcies and unemployment.

Connecticut reported the most claims. The states of Georgia, Florida, California, and New York each have more than 200,000 in fillings.

While these claims indicate that Americans are able to at least file for benefits after losing their jobs, it is unclear how many of them actually receive these benefits. Some states have reported delays in approvals and payments.