It only took four weeks for the US economy to remove almost all the job gains in the last 11 years.
Coronavirus and the forced closure of businesses across the country no longer trigger number of Americans filing for state unemployment benefits, which last week reached 5.245 million, the Labor Department reported Thursday.
Combined with the previous three jobless claims report, the number of Americans who have filed for unemployment during the previous four weeks 22.025 million. That figure is just below the 22.442 million jobs were added to nonfarm payrolls since November 2009, when the US economy began to add jobs back into the economy after the Great Recession.
Only 417,000 more US workers need to file for unemployment benefits to erase all nonfarm profit since 2009, the figures may be easily surpassed this week.
Rapid nature of the lost jobs will be unprecedented, wiping out more than a decade of job gains in five weeks. We’ll know for sure next Thursday when the national claims for the week were reported.
“While the unemployment rate is now down to the last week, they still mean that all the job gains since the financial crisis has been erased,” writes Seema Shah, chief strategist at Principal Global Investors. “Moreover, with many workers, including those in the gig economy, are not included in these figures, the labor market pain may be even worse than these figures show.”
“Concerns for the second half of this year may be underestimated,” he added. “Although the government is seeking to lift lockdowns, the resumption of the economy will only be gradual, compounding the financial strain on businesses and households, depressed demand and showed a slower recovery of the economy.”