ALL NEWS

US jobless claims soar to record 3.3 million as layoffs jump

Mar 26, 2020, 6:36 AM | Updated: 12:05 pm
women men jobs...
Photo: Getty Images

WASHINGTON (AP) — Nearly 3.3 million Americans applied for unemployment benefits last week — more than quadruple the previous record set in 1982 — amid a widespread economic shutdown caused by the coronavirus.

The surge in weekly applications was a stunning reflection of the damage the viral outbreak is doing to the economy. Filings for unemployment aid generally reflect the pace of layoffs. So the latest figures suggest that roughly x% of America’s workforce was laid off just through the week that ended March 21. That is the highest proportion on records dating to 1971.

The pace of layoffs is sure to accelerate as the U.S. economy sinks into a recession. Revenue has collapsed at restaurants, hotels, movie theaters, gyms, and airlines. Auto sales are plummeting, and car makers have close factories. Most such employers face loan payments and other fixed costs, so they’re cutting jobs to save money.

As job losses mount, some economists say the nation’s unemployment rate could approach 13% by May. By comparison, the highest jobless rate during the Great Recession, which ended in 2009, was 10%.

The economic deterioration has been swift. As recently as February, the unemployment rate was at a 50-year low of 3.5%. And the economy was growing steadily if modestly. Yet by the April-June quarter of the year, some economists think the economy will shrink at its steepest annual pace ever — a contraction that could reach 30%.

Many people who have lost jobs in recent days have been unable to file for unemployment aid because state websites and phone systems have been overwhelmed by a crush of applicants and have frozen up. That logjam suggests that Thursday’s report on filings for unemployment benefits actually understates the magnitude of job cuts last week.

With layoffs surging, a significant expansion of unemployment benefits for the millions who will lose jobs as a result of the coronavirus outbreak was included in an economic relief bill nearing final approval in Congress. One provision in the bill would provide an extra $600 a week on top of the unemployment aid that states provide. Another would extend 13 additional weeks of benefits beyond the six months of jobless aid that most states offer.

Separate legislation passed last week provides up to $1 billion to states to enhance their ability to process claims. But that money will take time to be disbursed.

We want to hear from you.

Have a story idea or tip? Send it to the KSL NewsRadio team here.

Today’s Top Stories

All News

Sen Lee debates formula...
Mark Jones

Sen. Lee shares insights in recent visit with Mexico’s president

Utah Sen. Mike Lee joined inside Sources with Boyd Matheson to discuss a recent visit he along with seven other senators and four congressmen had with the president of Mexico.
1 day ago
Crash totals...
Mark Jones

UHP: Three people dead in two-vehicle crash in Kane County

Three people are dead Tuesday night following a two-vehicle crash in Kane County, according to the Utah Highway Patrol.
1 day ago
FILE - In this April 23, 2018 file photo, Gwyneth Paltrow arrives at the world premiere of "Avenger...
Lindsay Aerts

Gwyneth Paltrow ski crash trial begins in Park City, lawyer calls it “B.S.”

PARK CITY, Utah — In the opening day of the 2016 Gwyneth Paltrow ski crash trial in Park City, opening statements were given and a witness has testified. The Hollywood actress is being sued by Terry Sanderson, who claims she skied into him on the slopes at Deer Valley Resort.  Her lawyer didn’t mince words […]
1 day ago
usu sign is pictured, a lawsuit has been filed against the school...
Hugo Rikard-Bell

USU grad files lawsuit against university for racist caricature

USU released a statement about the lawsuit and said the school followed its non-discrimination policy when the student initially made the complaint.
1 day ago
Zions Bank branch at 7015 South Highland Dr. Cottonwood Heights on Tuesday, March 14, 2023. Zions B...
Curt Gresseth

Are joint bank accounts good or bad for couples?

Are joint bank accounts good or bad for a marriage. Dave and Debbie share their experiences.
1 day ago
design...
Devin Oldroyd

Gov. Cox signs bill requiring “historic” Utah state flag to be flown at Capitol at all times

Gov. Spencer Cox signed a new state flag bill Tuesday. S.B. 31 requires the "historic" Utah state flag to be flown at all times at the Capitol.
1 day ago

Sponsored Articles

Cheerful young woman writing an assignment while sitting at desk between two classmates during clas...
BYU EMBA at the Marriott School of Business

Hear it Firsthand: 6 Students Share Their Executive MBA Experience at BYU’s Marriott School of Business

The Executive MBA program at BYU offers great opportunities. Hear experiences straight from students enrolled in the program.
Skier being towed by a rider on a horse. Skijoring....
Bear Lake Convention and Visitors Bureau

Looking for a new winter activity? Try skijoring in Bear Lake

Skijoring is when someone on skis is pulled by a horse, dog, animal, or motor vehicle. The driver leads the skiers through an obstacle course over jumps, hoops, and gates.
Banner with Cervical Cancer Awareness Realistic Ribbon...
Intermountain Health

Five common causes of Cervical Cancer – and what you can do to lower your risk

January is National Cervical Cancer Awareness month and cancer experts at Intermountain Health are working to educate women about cervical cancer.
Kid holding a cisco fish at winterfest...
Bear Lake Convention and Visitors Bureau

Get ready for fun at the 2023 Bear Lake Monster Winterfest

The Bear Lake Monster Winterfest is an annual weekend event jam-packed full of fun activities the whole family can enjoy.
happy friends with sparklers at christmas dinner...
Macey's

15 easy Christmas dinner ideas

We’ve scoured the web for you and narrowed down a few of our favorite Christmas dinner ideas to make your planning easy.
Spicy Homemade Loaded Taters Tots...
Macey's

5 Game Day Snacks for the Whole Family (with recipes!)

Try these game day snacks to make watching football at home with your family feel like a special occasion. 
US jobless claims soar to record 3.3 million as layoffs jump