eResearch | Last week, almost 3.3 million Americans applied for unemployment benefits during the widespread layoffs caused by the COVID-19 pandemic crisis. The surge in weekly applications greatly surpassed the 665,000 claims filed in March 2009 during the financial crisis and the all-time record of 695,000 claims filed in October 1982 during the early 1980’s recession.
GRAPH 1: U.S. Seasonally Adjusted Weekly Unemployment Claims
After the unemployment rate hit a 50-year low in February of 3.5%, the number of unemployment benefit claims filed implies an unemployment rate approaching 5.5%, according to Bloomberg economists.
With millions of more virus-related job losses to come, Ellen Zentner, an economist at Morgan Stanley, wrote in a research note that the U.S. unemployment rate could reach almost 13% in the second quarter as the pandemic in the U.S. has yet to peak.
Since 1940, the highest jobless rate in the U.S., was 10.8% during the recession in the early 1980’s and peaked at the end of 1982.
GRAPH 2: FRED Unemployment Rate (U.S.)
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