US braces for record jobless claims
The U.S. is bracing for more job losses as employers around the country shed workers during the coronavirus pandemic. The country has already seen a 33% increase in jobless claims filed last week, or about 70,000 more applications compared to the first week of March, according to the Labor Department. Goldman Sachs says that is only the tip of the iceberg, however. Its economists estimate that 2.25 million Americans filed for their first week of unemployment this week, reports CNN. If they’re correct, it would be the largest number of claims on record. Before the pandemic, the U.S. was enjoying an unemployment rate hovering around a 50-year low.
More jobs updates:
- The crude oil bust is causing "tens of thousands" of layoffs in the U.S. shale industry, reports Bloomberg.
- The entertainment industry has so far shed 120,000 "below-the-line" jobs, which represent 80% of the International Alliance of Theatrical Stage Employees.
- The U.S. is projected to lose 4.6 million travel-related jobs this year due to the coronavirus outbreak, according to the U.S. Travel Association.
- Marriott, the world's largest hotel chain, will begin furloughing tens of thousands of workers as it temporarily closes hotels and resorts among its 30 brands. More than 15 million hospitality jobs could be at risk.
- Hotels, airlines, port operators and more are among companies that have begun layoffs.
- Furloughing, rather than laying off, workers can help companies maintain morale and draw on experienced employees when business picks up again, Harvard Business School professor Sandra Sucher said.
- A typical post-World War II recession has seen the U.S. unemployment rise by 2-2.5 percentage points, which today would translate into about 3.5 million lost jobs, economist David Wilcox said.