US jobless claims hit 6.6m as coronavirus slams economy
US jobless claims hit 6.6m last week as a result of the coronavirus pandemic which has wreaked economic chaos.
The data from the Department of Labor showed 6.6m Americans claimed unemployment benefits for the first time last week.
Last week the Department of Labor said 6.6m had claimed for unemployment benefits for the first time, which has now been revised up to 6.86m.
Last week’s numbers eclipsed the previous record of 3.3m jobless claims set the previous week.
Analysts had predicted 5.5m new jobless claims this week.
The US Federal Reserve also pledged $2.3 trillion (£1.85 trillion) in aid today for local governments struggling with the crisis.
The 6.6m new jobless claims last week follow nearly 10m people claiming for unemployment for the first time over the previous two weeks.
Neil Birrell, chief investment officer at Premier Miton Investors, said:
“It’s hard to find any good news in the economic data at the moment, and it’s unsurprising the Fed is stepping up its liquidity measures in such a significant fashion.
“Equity markets have been really strong of late, and it feels like they have lost touch with the reality for now. Markets will get pulled to and from by the bad data and positive Fed action.”
“These dismal numbers suggest another record-breaking April jobs report,” said Beth Ann Bovino, chief US economist at S&P Global Rating. “America is now in recession and as it appears to deepen, the question is how long it will it take before the US recovers.”
Ronald Temple, co-head of multi-asset and head of US equity at Lazard Asset Management, said: “With 16.8m jobless claims in three weeks, the catastrophic scale of the covid-19 crisis is even more apparent. While the Fed has acted quickly, it is critical that the fiscal stimulus in the CARES Act be delivered immediately and be of sufficient size to support the economy.
“The Fed rode to the rescue again with funding for businesses and state and local governments. Importantly, the $2.3 trillion of funding announced today is backed by $195bn of the $454bn allocated in the CARES Act, meaning there is plenty more dry powder available if needed.”
The US has had more than 430,000 confirmed cases of coronavirus and has suffered more than 14,000 deaths.
Data released by the Canadian government today showed the country lost 1m jobs last month.