Total Unemployment Claims Top 22 Million With Another Surge In Applications

(ConservativePeak.Com)- Total Unemployment Claims Top 22 Million With Another Surge In Applications

Another week, another 5.2 million people claiming unemployment benefits.
As the coronavirus pandemic continues to keep people in their homes, businesses are struggling to stay above water without laying off or furloughing workers. Despite financial relief programs designed to help these businesses, it’s still not enough to keep businesses from making massive changes to stay afloat.
Somehow, the 5.2 million people who filed for unemployment benefits during the week that ended April 11 is a lot less than the 6.9 million who filed the week that ended March 28, according to the Labor Department.
Over the last four weeks, 22 million people in the U.S. have filed for unemployment. This means the coronavirus pandemic has completely erased the 20 million or so jobs the country added since June 2009 — and then some. During the Great Recession, “only” 8.6 million Americans lost their jobs, and that happened over a two-year period.
While President Donald Trump — and everyone for that matter — would like to re-open the country and get the economy rolling again as soon as possible, it just doesn’t seem likely that it will happen in the next few weeks. Most people believe that when the country can start to relax stay-at-home restrictions, it will be done in a slower, more staged process. This means the country likely won’t return to “business as normal” for quite some time.
Many economists predict the country’s unemployment rate will reach double digits in April, after being at a historic low of 3.5% in February.
The senior vice president for Moody’s Investors Service, Robard Williams, commented:
“As shutdowns continue, job losses will likely extend into other areas of the labor market, such as business and professional services where firms may begin to see lower revenues from a second order pull back in demand.”
Long-term, many economists see these job losses as temporary, since the economy was doing so well before the coronavirus outbreak. The question, though, is just how long that will be.
While the federal government injected serious support into the unemployment system, many state agencies are having difficulty keeping up with all of the new claims. Many states are operating on antiquated systems, which has caused online portals to crash or not work well.
This has caused huge delays in people receiving approval to their applications, which in turn greatly delays their access to much-needed money. That then leads to them falling behind on bills, which causes businesses in other industries such as landlords and mortgage companies to struggle as well.
In New York, the state can only fund up to 10 weeks of unemployment benefits for all the claims they have received, according to the Tax Foundation. This means they’ll need extra support from the federal government just to meet their current demand.
People who do qualify for unemployment are set to receive an additional $600 per week from the federal government on top of their state benefits. This was part of the $2 trillion economic stimulus package Congress passed not long ago.