Unemployed line up for miles at food banks and millions skip paying rent
San José, CA – For the second week in a row, the U.S. Department of Labor reported April 9 that more than 6 million people applied for unemployment insurance in the previous week. The Labor Department also revised up last week’s claim numbers to 6.6 million, meaning that a total of 16.8 million people have lost their jobs and applied for UI benefits in just the last three weeks. The actual number could be higher as many states’ websites, phone lines and paper application sites were swamped.
San José, CA – Much of the day-to-day news coverage on the COVID-19 pandemic in the United States has been on the plight of New York City, which has been the hardest hit to date. With more than 8 million people, NYC is the largest city in the United States, but the number of COVID-19 infections, at more than 63,000, is more than any other entire country in the world except for the United States, Spain, Italy, Germany, France and China. The death toll of more than 2500 is more than every other country in the world except for Italy, Spain, the United States, France, the United Kingdom, Iran and China.
San José, CA – The headline news that the unemployment rate for March jumped by almost a full percentage point, to 4.4%, was bad enough. The actual unemployment rate was much higher by the end of March, given that the more 10 million people who lost their jobs and filed for unemployment insurance benefits in the last two weeks of March were not counted. Adding in these workers would have increased the unemployment rate by more than 6%, raising the total rate at the end of March to about 10.5%.
Businesses slash 700,000 jobs in the first half of March
San José, CA – On Friday, April 3, the U.S. Department of Labor reported that businesses cut more than 700,000 jobs last month. This report was based on surveys from the first half of March, before the full impact of the COVID-19 pandemic hit. This ended the longest streak of job gains – almost nine and a half years – and almost certainly marked the beginning of a recession.
A new record of 6.6 million Americans apply for benefits
San José, CA – New claims for Unemployment Insurance (UI) benefits doubled from record numbers just a week earlier. On Thursday, April 2, the Department of Labor reported that more than 6.6 million people applied for state unemployment insurance benefits for the week ending March 28. This means that almost 10 MILLION people lost their jobs and applied for UI benefits in just the last two weeks of March. This economic crisis has caused more job losses in two weeks than the entire 2007 to 2009 recession, where 8 million jobs were lost.
San José, CA – Many immigrants won’t be able to get help from the bipartisan COVID-19 pandemic aid bills passed by Congress and signed by President Trump. More than 4 million undocumented immigrants who are paying taxes with an Individual Taxpayer Identification Number, or ITIN, will not qualify for the $1200 per person benefit because they have no Social Security number. Another 5 million American citizen children with undocumented parents also will not get the $500 per child benefit.
Wall Street ignores human suffering to launch new bull market
San José, CA – On Thursday, March 26, the Labor Department reported the new claims for Unemployment Insurance (UI) benefits rocketed to 3.3 million for the week ending March 21. This was almost five times the previous record of almost 700,000 new claims in October of 1982, when the recession drove the unemployment rate to 10.8%. The number of new claims for UI was 15 times higher than the report just two weeks earlier.
San José, CA – The U.S. Senate has failed twice to pass a Republican-backed economic stimulus bill worth over a trillion dollars ($1,000,000,000,000). Opposition to the bill comes from its top-down (or in the 1930’s Great Depression term, ‘trickle down’) approach. The bill would provide hundreds of billions of loans to corporations that would not have to be paid back, just as in the loans made to U.S. auto makers after the financial crisis in 2008. It would also give direct cash handouts, with almost half of all households getting half of what middle and higher income households would get.
Federal Reserve takes extreme measures to protect wealthy
San José, CA – Last week the financial news was dominated by the falling stock market, which had its worst week since the 2008 financial crisis. But behind the scenes the U.S. Federal Reserve, or Fed, was working feverishly to prevent another financial crisis, taking actions not even done during the 2008 crash.
San José, CA – On Thursday, March 19, the Department of Labor reported a surge of applications for Unemployment Insurance (UI) benefits as the COVID-19 pandemic began to bite into the economy. For the week ending March 14, a seasonally adjusted 281,000 claims were filed, up 70,000 (or one-third) from the week before and much greater than the predicted 220,000. A National Public Radio poll also conducted last week showed that 18% of all households had already lost income from layoffs or reduced work hours.
