WASHINGTON (AP) — Nearly 3 million laid-off workers applied for U.S. unemployment benefits last week as the viral outbreak forced more companies to slash jobs even though most states have begun to let some businesses reopen.
Roughly 36 million people have now sought jobless aid in just the two months since the coronavirus first forced businesses to close down and shrink their workforces, the government said Thursday. An additional 842,000 people applied for aid last week through a separate program for self-employed and gig workers.
All told, the figures point to a job market gripped by its worst crisis in decades and an economy that is sinking into a deep downturn. The pace of new applications for aid has declined over the past several weeks but is still four times the record high that prevailed before the coronavirus struck hard in March.
The waves of job cuts have heightened concerns that additional government aid, on top of the nearly $3 trillion already allocated, is necessary to sustain the economy. Without another aid package, many economists worry that thousands of small businesses will go bankrupt, leaving millions of the unemployed with no job to return to. And state and local governments, facing huge revenue shortfalls, could be forced to lay off millions more workers and cut services.
Federal Reserve Chair Jerome Powell this week stressed his belief that Congress should consider providing additional rescue money to avoid prolonging an economic catastrophe.
Republicans in Congress are locked in a standoff with Democrats, who have proposed trillions more in aid. Republican leaders say they want to first see how the previous rescue packages affect the economy and have expressed skepticism about approving much more spending now. That sentiment has alarmed some economists.IMPACT ON THE ECONOMY:
- – April job losses fall hard on restaurants, retailers
- – Asian shares mixed as stocks meander on pandemic worries
- – Pandemic wrecks many state budgets, could trigger deep cuts
About the Author
Cape Charles Mirror does not know the true meaning of Socialism not many people do. Socialism grew out of WW1 when the West brought Germany to its knees economically. France levied a 10 Billion dollar fine for starting WW!. to pay all the damage it caused to France.
Germany did not have it so they floated Bond with very high interest return that caused inflation. you read many time “a wheel Barrel of Marks brought a loaf of bread.
Hitler came along with Socialism and made Germany the most powerful country economically and Military powerhouse in the world.
He made socialism work so did Italy , jobs for everyone, free schools, free medicine free everything to sustain a good standard of life.
Capitalism here would not allow Socialism to be enacted here in the USA. because they would have to pay the bill.