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COVID-19 | Special Report
UNEMPLOYMENT
CLAIMS TOP 3M
In the week ending on March 21,
there were 3,283,000 claims for insured
unemployment, an increase of 3,001,000 from
the previous week's revised level. According
to the United States Department of Labor,
this is the largest increase in history, as the
previous high was 695,000 in October of
1982.
"is sudden increase in UI claims reflects
the shock to demand in the economy," said
Doug Duncan, Chief Economist at Fannie
Mae. "For a large segment of the workforce,
the rapidly deteriorating employment
situation is due to the spread of the
COVID-19 outbreak, as well as the associated
policy restrictions and shifts in consumer
behavior, both aimed at avoiding infection.
We interpret this morning's release as a strong
leading indicator of an expected increase in
household financial stress."
Most states cited COVID-19 virus
impacts in their unemployment reports.
States continued to cite services industries
broadly, particularly accommodation and food
services. Additional industries heavily cited
for the increases included the health care
and social assistance, arts, entertainment and
recreation, transportation and warehousing,
and manufacturing industries.
In an effort to mitigate the economic
impact of COVID-19, Senate Democrats and
Republicans agreed to a stimulus package that
totals more than $2 trillion early Wednesday
morning. Senate passed th economic relief
package Wednesday night; it now heads to the
House.
"e stimulus bill proposal currently
working its way through Congress seeks to
address certain features of the UI systems,
such as eligibility requirements and the
amount and maximum duration of benefits
paid, which are intended to help alleviate
some of the financial stressed caused by
job loss," Duncan continues. "Furthermore,
payments to households are designed to make
up for lost earnings. Proposed support for
businesses is intended to help them survive
the shock to demand in order to be positioned
to re-hire workers after the virus subsides and
demand picks back up.
