Another 1.9 Million New Jobless Claims

While this is better than the 6 million claims at the peak of the pandemic this week's jobless report of 1.9 million claims is still almost three times worst than any weekly claims report before this year.

Tomorrow's unemployment number is going to be grim:

Another 1.9 million Americans filed for unemployment benefits last week as the total number of claims passed 42 million since the coronavirus pandemic hit the US.

The pace of layoffs has slowed dramatically from its peak of 6.6m at the start of April as states start to relax quarantine orders and last week was the ninth consecutive week of declines. But the scale of layoffs remains staggeringly high. In the worst week of the last recession “just” 665,000 people filed for unemployment.

Jason Reed, professor of finance at the University of Notre Dame’s Mendoza College of Business, said the numbers may be coming down, but “this is unprecedented. The figures are so high that it’s hard to grasp the reality.”

On Friday the labor department will release May’s monthly jobs report. Economists are predicting unemployment will rise to close to 20% from 14.7% in April and some 8m more jobs will have been lost after a combined drop of 21.4m in March and April.

Tomorrow is going to be very grim.