Unemployment Numbers Grim, Economic Experts Say

brianoconnell

1.877 million Americans filed for unemployment this week, as more U.S. workers are let go by cash-conscious companies.

No doubt, the damage done to the U.S. economy by the pandemic, and the resulting heavy-handed state lockdowns mandated by many U.S. governors over in March and April, are taking a huge toll on American workers.

This from Mark Hamrick, senior economic analyst at Bankrate:

"While new jobless claims remain elevated for an 11 straight week, we see the ninth consecutive decline after a peak of nearly 6.9 million in late March. That’s the bright spot while the situation overall remains grim."

Continuing claims moved in the opposite direction of what we would want to see, rising to 21.5 million, Hamrick says.

"In many ways, the claims numbers provide the closest thing to real-time insight into the status of the badly damaged job market," he notes. "No matter how you crunch the variety of statistics, the job market story is devastating and heartbreaking, and is unlike anything we’ve seen in our lifetimes. That’s among a series of coinciding storms we’re currently experiencing."

Hamrick also points to a new Bankrate survey finds the consensus among economists is that the jobless rate will remain in the double-digits into next year https://www.bankrate.com/surveys/economic-indicator-survey-june-2020/.

He also cites the recent nationwide protests over the tragic death of David George, an African-American, at the hands of Minneapolis, Minn. police on May 25, 2020.

"The worst social unrest in the U.S. in decades was not exclusively ignited by economic inequality, but it provided fuel for the fire," Hamrick says. "As the COVID-19 economic crisis has mushroomed, Blacks, Hispanics, women and teenagers have been hit with the highest rates of unemployment."