AP

30 million have sought US jobless aid since virus hit

Apr 30, 2020, 6:14 AM | Updated: 6:38 am
FILE A man walks past a closed business, Wednesday, April 29, 2020, in Chagrin Falls, Ohio. (AP Pho...
FILE A man walks past a closed business, Wednesday, April 29, 2020, in Chagrin Falls, Ohio. (AP Photo/Tony Dejak)
(AP Photo/Tony Dejak)

WASHINGTON (AP) — More than 3.8 million laid-off workers applied for unemployment benefits last week as the U.S. economy slid further into a crisis that is becoming the most devastating since the 1930s.

Roughly 30.3 million people have now filed for jobless aid in the six weeks since the coronavirus outbreak began forcing millions of employers to close their doors and slash their workforces. That is more people than live in the New York and Chicago metropolitan areas combined, and it’s by far the worst string of layoffs on record. It adds up to more than one in six American workers.

With more employers cutting payrolls to save money, economists have forecast that the unemployment rate for April could go as high as 20%. That would be the highest rate since it reached 25% during the Great Depression.

This week, the government estimated that the economy shrank at a 4.8% annual rate in the first three months of this year, the sharpest quarterly drop since the 2008 financial crisis. Yet the picture is likely to grow far worse: The economy is expected to contract in the April-June quarter by as much as 40% at an annual rate. No previous quarter has been anywhere near as weak since the government began keeping such records after World War II.

As businesses across the country have shut down and laid off tens of millions of workers, the economy has sunk into a near-paralysis in just a few weeks. Factories, hotels, restaurants, department stores, movie theaters and many small businesses are shuttered. Home sales are falling. Households are slashing spending. Consumer confidence is sinking.

With some signs that the viral outbreak may have plateaued at least in certain areas of the country, a few governors have taken tentative steps to begin reopening their economies. But surveys show that a large majority of Americans remain wary of returning to shopping, traveling and other normal economic activity. That suggests that many industries will struggle with diminished revenue for weeks or months to come and might be unable to rehire laid-off workers.

THIS IS A BREAKING NEWS UPDATE. AP’s earlier story is below:

The U.S. government is expected Thursday to issue another bleak report on the layoffs that have cut through America’s workforce since the coronavirus forced businesses across the country to shut down starting last month.

The Labor Department will likely report that several million more people filed for unemployment benefits last week, after more than 26 million applied for aid in the previous five weeks. All told, the layoffs add up to the largest streak of U.S. job losses on record.

Across nearly every industry, nonessential businesses have closed, and workers have been sent home with no clear idea of when or whether they might be recalled. An economic recovery may be months or years off, though governors in a few states have begun allowing some businesses to reopen under certain restrictions.

For April, economists say the unemployment rate could go as high as 20%. That would be the highest rate since the Great Depression, when it reached 25%.

Today’s Top Stories

AP

Twitter might get bought by Elon Musk after all. Twitter screen shown on phone...
TOM KRISHER, MATT O'BRIEN and RANDALL CHASE Associated Press

Musk offers to end legal fight, pay $44B to buy Twitter

The offer comes just two weeks before the Twitter lawsuit seeking to force Musk to go through with the deal goes to trial in Delaware Chancery Court.
2 days ago
supreme court pictured, its new term has started and will hear new cases...
The Associated Press

Supreme Court’s top cases for new term, new Justice Jackson

Already the Supreme Court has said it will decide cases on a range of major issues including affirmative action, voting rights and the rights of LGBTQ people.
3 days ago
TikTok shown on a phone. TikTok is proving influential in poliitics...
DAVID KLEPPER Associated Press

TikTok politics: Candidates turn to it ‘for better or worse’

TikTok isn't just about viral dance challenges anymore, but also a place to shop, learn about beauty, fashion or even politics.
6 days ago
Damage from Hurricane Ian...
ADRIANA GOMEZ-LICON Associated Press

Ian returns to hurricane status, meanwhile floods trap many in Florida

Hours after weakening to a tropical depression while crossing the Florida peninsula, Ian regained hurricane strength Thursday evening after emerging over the Atlantic Ocean.
7 days ago
An uprooted tree, toppled by strong winds from the outer bands of Hurricane Ian, rests in a parking...
CURT ANDERSON Associated Press

Ian makes landfall in southwest Florida as Category 4 storm

About 2.5 million people had been ordered to evacuate the area before the storm hit the coast on Wednesday with maximum sustained winds of 150 mph (241 kph).
8 days ago
The White House to ask for less money to fund border wall...
ACACIA CORONADO and GISELA SALOMON Associated Press

Increase in Venezuelan migration is felt across US

Last month, Venezuelans surpassed Guatemalans and Hondurans to become the second-largest nationality stopped at the U.S. border after Mexicans.
10 days ago

Sponsored Articles

Young woman receiving laser treatment...
Form Derm Spa

How facial plastic surgery and skincare are joining forces

Facial plastic surgery is not only about looking good but about feeling good too. The medical team at Form Spa are trained to help you reach your aesthetic outcomes through surgery and through skincare and dermatology, too.
large group of friends tohether in a park having fun...
BYU MBA at the Marriott School of Business

What differentiates BYU’s MBA program from other MBA programs

Commitment to service is at the heart of BYU’s MBA program, which makes it stand out among other MBA programs across the country.
a worker with a drill in an orange helmet installs a door in the house...
Price's Guaranteed Doors

Home improvement tip: Increase the value of your home by weatherproofing doors

Make sure your home is comfortable before the winter! Seasonal maintenance keeps your home up to date. Read our tips on weatherproofing doors.
Curb Appeal...
Price's Guaranteed Doors

How to have the best of both worlds for your house | Home security and curb appeal

Protect your home and improve its curb appeal with the latest security solutions like beautiful garage doors and increased security systems.
A paper reading IRS, internal revenue service is pictured...
Jordan Wilcox

The best strategies for dealing with IRS tax harassment | You have options!

Learn how to deal with IRS tax harassment. This guide will teach you how to stop IRS phone calls and letters, and how to handle an IRS audit.
spend a day at Bear Lake...
Bear Lake Convention and Visitors Bureau

You’ll love spending the day at Bear Lake | How to spend a day at Bear Lake

Bear Lake is a place that needs to be experienced. Spend a day at Bear Lake.
30 million have sought US jobless aid since virus hit