US unemployment skyrockets as coronavirus crashes economy
More than three million Americans lost their jobs last week, the worst ever recorded, as the coronavirus shutdown hits the US economy
Jobless claims soared to 3.3 million in the week to 21 March from 282,000 a week earlier, according to the US Department of Labor (DoL).
“This marks the highest level of seasonally adjusted initial claims in the history of the seasonally adjusted series,” the Department of Labor said.
“During the week ending 21 March, the increase in initial claims is due to the impacts of the Covid-19 virus,” the DoL said.
The unprecedented rise in jobless claims came despite the US Federal Reserve pumping trillions of dollars into the banking system, slashing interest rates to zero and lending an enormous amount of money to businesses.
However, the figures were recorded before the US Congress signed off on a $2 trillion stimulus package that seeks to help businesses and workers as coronavirus ravages the economy.
Yet it is unlikely that even the biggest government stimulus package in history can stop unemployment from soaring to record highs and the US entering a deep recession.