NEW: 6.6 million Americans filed for unemployment benefits last week.
That’s on top of 6.6 million the week before
And 3.3 million the week before that
That means 16.5 million Americans have lost their jobs in three weeks. That’s 10% of the US labour force. Staggering.
That’s on top of 6.6 million the week before
And 3.3 million the week before that
That means 16.5 million Americans have lost their jobs in three weeks. That’s 10% of the US labour force. Staggering.
As bad as 16.5 million is, the true picture may be even worse. American unemployment offices are being overwhelmed, phone lines jammed (sound familiar?) and lots of reports of people being unable to register their claim. So true number undoubtedly higher.
This appalling unemployment situation is developing in a country with one of the weakest social security nets anywhere in the Western world. Will prove an enormous challenge for the Federal and state govts to contain.
And that net is substantially weaker in some states than others. In the states it is weakest and has, in many ways been completely hollowed out (eg many states in Deep South) problem may become most acute; with state leadership which is most reluctant to take decisive govt action
Assuming the unemployment rate in the US is a minimum of 13% right now, then if the current rate of unemployment increases were to sustain, then in just three weeks the number of unemployed would be at or just surpass the peak of the Great Depression (24.9%, 1933).
Of course, we don't know if it will sustain, or indeed how permanent these increases in unemployment are. What we do know is we've not seen anything like this before.
