Fri 08 May 2020:
Job losses from coronavirus lockdowns send US unemployment rate skyrocketing to highest level since Great Depression.
We have never seen anything like this before.
The depth and breadth of the damage inflicted on the United States economy by coronavirus lockdown measures came into sharp, painful focus on Friday with government figures showing 20.5 million Americans lost their jobs in April.
Data from the US Bureau of Labor Statistics also showed the unemployment rate skyrocketed to 14.7 percent last month – the highest since the Great Depression.
Behind all of these numbers are real people whose livlihoods have been brutally and tragically disrupted by the coronavirus pandemic.
The data further confirms the overwhelming consensus that the US economy is in the throes of sharp recession.But in a sobering reality check, the headline numbers likely understate the true scale of the carnage.
“Although the unemployment rate only climbed to 14.7%, slightly below expectations, that was principally because the BLS is still having problems with misclassifying absent workers who should have been recorded as on temporary layoff,” Capital Economics chief US economist Paul Ashworth wrote in a note to clients. “Without that distortion, the unemployment rate would have been close to 20% last month.”
Though historic, the data came as no surprise, given weekly jobless claims since mid-March have offered a preview of the monthly destruction on tap.
But the April numbers do provide more details about which workers and which sectors of the economy were hardest hit by stay-at-home orders.
Broken out by race and gender, the unemployment rate hit 13 percent for adult men and 15.5 percent for adult women; 14.2 percent for Whites, 16.7 percent for Blacks, 14.5 percent for Asians and 18.9 percent for Hispanics.
All of these groups with the exception of Blacks posted record high unemployment rates.
Every major sector of the economy hemoeragged jobs last month, but losses were particularly acute in leisure and hospitality where employment plummeted by 7.7 million, or 47 percent. Nearly three-quarters of that carnage – some 5.5 million job losses -was borne by food services and drinking places.
Education and health services lost 2.5 million jobs in April, while healthcare shed 1.4 million, led by losses in dentists offices.
Employment in professional and businesses services, and retail trade each fell by 2.1 million.
Some 1.3 million manufacturing workers lost their jobs in April, with nearly two-thirds of that total coming from personal and laundry services.
Job losses in construction were just shy of one million last month.
The average workweek for all employees ticked up slightly in April to 34.2, but Bureau of Labor Statistics commissioner William W Beach urged caution when interpreting that data, noting in a statement that “the majority of the increase in average weekly hours reflects the disproportionate number of workers with shorter workweeks who went off payrolls; their removal put upward pressure on the average hours estimate.”
Beach also urged caution when interpreting the $1.34 rise in average hourly earnings, because it reflects the disproportionate loss of low-wage jobs.
SOURCE: AL JAZEERA NEWS
Think your friends would be interested? Share this story!
