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U.S. Initial Jobless Claims Leap to Record 6.65 Million

Published 04/02/2020, 08:28 AM
Updated 04/02/2020, 08:31 AM
© Reuters.

By Noreen Burke

Investing.com - The number of Americans applying for initial unemployment benefits surged to a new record 6.65 million last week, the U.S. Labor Department said on Thursday, as the full impact of the fallout from the coronavirus pandemic on the labor market became apparent.

The increase dwarfed the prior week’s figure of 3.28 million and eclipsed the previous record of 695,000 set in 1982.

The number of people already receiving benefits increased to 3.029 million, the report said.

Ahead of the report, Goldman Sachs had revised up its estimate for jobless claims to 6 million, adding it expected claims to remain very elevated in the coming weeks.

"Jobless claims will be the timeliest hard data point for assessing the depth of the recession and catching the start of the recovery," Goldman Sachs economists wrote in a note to clients.

The numbers come ahead of the Labor Department's nonfarm payrolls report for March on Friday. Due to the timing of the survey period for the government report it likely preceded the worst of the impact on the labor market.

Economists still expect the figures to show a loss of 100,000 jobs.

A report from payroll processor ADP on Wednesday showed that the U.S. private sector shed 27,000 jobs in March, but took March 12 as its cut-off date, before the worst of the impact of the pandemic on the U.S. labor market was seen. It was still the first decline in private sector hiring since September 2017.

--Reuters contributed to this report

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Latest comments

I think its about time markets stop following Trump tweets and focus on s(t/c)reaming economic data.
No worry, next week number be rocket, then Trump will Twittering another Big lie.
good news is bad news when your smoking stocks. At least whe mn someone's willing to pay for your stock habits because they will get smoked unless we start not evaluating based on eps pe revenue growth guidance
Trump, do not lie to people concern oil, but mind unemployment. Kremlin making fun of Trump's lie.
Any idea why this news should  launch the stocks into orbit?
Even IF Trump ends the oil war. Where are they going to drum up demand again during global economic shutdown?
shale stocks rocket as Trump's unreliable talks, but oil price war last long, and many of them will be bankrupted. after then as the strategy of oil price war, Russia and Saudi can have dialogue.
Oil surge 25%, just rip service of Trump. so easy to make a deal with Putine and Saudi? No way.
Who the *******is sitting at home (on quarantine during a global economic shutdown) and buying stocks in the face of almost definite 47million unemployed by the end of this nightmare, thinking 100% of those unemployed people will just get hired back by strugglomg/bankrupt companies? Even if half were instantly hired back (highly unlikely), that would still be an economic nightmare that no amount of printing will fix. All this additional printing will do is cause inflation. To fight inflation fed would have to raise interest rates. Think about what raising interest rates would do to this powder keg? And if you don’t know the answer to that question, then BTFD! Hahahaha!!!
Trump can order companies to produce enough test kits for all american. A test kit cost about 30usd or less to make. If we test all and isolate them, it will cost max 50billions and we dont have to be in this mess.
i think people need to do some serious research into the origins of this virus, and more importantly the reasons and outcomes behind it.
it's all rubbish.how can any one count on this numbers in this current situation of covid19 pandemic
When people are told to stay home from work they file unemployment. This is not the same as being laid off because of lack of work. Not a recession indicator. Apples and oranges.
ypu have rigth. but also what you did not know is that support from the state is for a short time, and the economic activity of companies will take too long more than 1.5 year to be like it was before Covid 19. So it is not like those people lose their job, but when the employers lose their revenue and business activity it is the same
loss of revenue= loss of jobs as simple as that. nothing guarantees these people will have their jobs back when this situation is over.
if people are stuck at home and can't work, it's still a recession. Doesn't matter why they were laid off
Hmm
feds better start printing to keep up!!
We should give more money to the Kennedy center. The relationship between politicians and celebrities is very important during a time like this.
Last week, i said at the end of the month you can put a zero behind te 3.28 million, won't be far off. Almost nobody realises the impact of this virus on a economy which was already going into a recession even without the virus!
because of this news us market is going down.therefore usd strength will be decreased according to the economics. but the thing is in the forex each and every USD pairs going up trend..Wy is that??this is not a good news to going up trend market. please can anyone explain this situation to me ???
Since more and more people want the USD because it is considered a safe-haven asset. Also, because of this sudden and lasting demand there are less and less USD in circulation, thus, less supply and more demand = higher prices.
Take advantage of the opportunity. As bad as it may seem. The market will recover and you want to be a beneficiary and not a contributor.
it's too early imo, the big dip is yet to come, wait it out, assuming you are in cash.
ok everyone should go back to work and catch the coronavirus instead... cant have it both ways..
Every Candian is getting thousand of dollors. We should too
There's no free money. Who do you think will give it to you? Piece of paper is almost free, I won't sell anything for that.
yea it's a fraud, you are paying for that through taxes and currency debasement
The fed should send every american 10,000 cash period. A check from the fed. We have to save the economy. Period
US is in 20 trillion debt and deficit is more than double where Obama left it. where will the money come from?
And you don't get anything whit that. Good luck trying to buy something whit your 100k.
Guys for real... just honestly start buying right now and balance your portfolio! Not 100 percent sure but I think its really worth it for the long term if you start investing even right now.
It's going to get worse before it gets better. There will be bargain priced stocks months from now. at least wait 2 months if you are in cash.
The worst is not coming yet.
why is that
he is saying rhat the worst isbyet to come
the worst is yet to come. Friggin auto-correct...
Can some one tell me how this will impact share market. ?
so it might be worst than 2008?
1. Expect a prolonged decline in consumer demand: the world economy is interconnected and even if the factories/restaurants reopen, people aren’t rushing to spend as they did before as seen in China. Might see a change in consumer behavior. 2. Stigma of stock buybacks and dividends: last decade of bull market were partly due to the huge amount spent on stocks buybacks, this will likely be regulated thus slowing stock price from rising.3. Hugely leveraged corporations across the spectrum with defaults happening all over the place, decrease in demand means they’re less likely to be able to pay back old debts, and has go take out new loans at higher interests to service those debts due to credit rating drops.
definetly will be
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