A new analysis released Tuesday shows that more U.S. workers filed unemployment claims last week than during any other week in the nation’s history.
An estimated 3.4 million Americans filed such claims for the week ending March 21, according to the findings from the Economic Policy Institute (EPI).
“This will dwarf every other week in history,” wrote EPI’s Aaron Sojourner and Paul Goldsmith-Pinkham, adding, “The true impacts are undoubtedly of larger scale than described here.”
The startling calculation—based on claims in 35 states and Washington, D.C. and extrapolated to the other 15 states—comes as the nation continues to experience a rise in cases of the novel coronavirus—with over 46,000 confirmed as of Tuesday—and as ordinary Americans feel the economic and societal impacts of the crisis, with schools, stores, and work places temporarily shuttered, varying degrees of lockdowns in place, and households and frontline workers still wondering if lawmakers will put their urgent needs above those of corporate America.
A graph accompanying the new EPI analysis, which is based on data from news reports from March 15 to March 21, illustrates the enormous jump in unemployment claims—even if the actual figure ends up being on the analysts’ low-end projection of 3 million claims. At no other point in the timeline shown does the figure even scrape 1 million.
Reaction to the findings was stark:
Judge rules against NY attorney general, says Trump’s $175M judgment bond will stand RFK Jr railing against ‘racially rancid’ voter ID laws in unearthed video Trump Trial to End Early on Day of Opening Statements Due to Juror’s Emergency Medical Appointment Olympics Scandal Explodes: Anti-Doping Agency Admits 23 Chinese Swimmers Tested Positive for Banned Substance, Were Never Punished NYC mayor hammers ‘professional’ Columbia anti-Israel agitators, says NYPD ‘ready’ to move in Official Olympics Account Invokes Zeus and Apollo in Pagan Ritual at Olympia, Misses Key Point About Jesus Christ Ilhan Omar daughter barred from campus housing, dining hall after anti-Israel protest suspension, she says Haters with Benefits Idaho sheriff’s deputy shot and killed during traffic stop: ‘Our hearts break’ Fetterman hammers ‘a–hole’ anti-Israel protesters, slams own party for response to Iranian attack: ‘Crazy’ GOP congresswoman demands Columbia University ‘restore order and safety’ amid anti-Israel protests LA mayor’s home broken into while it was occupied, suspect in custody Satanic Temple co-founder challenges Florida Gov DeSantis to debate on religious freedoms Trump Forced to Cancel Rally, ‘Devastated’ by What’s Coming – ‘I’m So Sorry … God Be with You’ Video shows caregiver hitting, torturing 93-year-old dementia patient: ‘She has no idea what’s going on’
This chart, holy shit https://t.co/luqjZ4ngsh pic.twitter.com/NeCbcOY1aw
— Christopher Ingraham (@_cingraham) March 24, 2020
Sojourner and Goldsmith-Pinkham, both research associates at EPI, put the projection into the context of the nation’s unemployment rate:
For scale, consider that 3.4 million Americans moving from employment to unemployment would raise the number of the unemployed from 5.7 million to 9.1 million. This alone would raise the unemployment rate by more than half, by 2 percentage points from 3.5% to 5.5%, moving back to 2015 levels in just one week. This spike represents 2.2% of all jobs in the economy. The largest monthly rise in the unemployment rate in American history was plus 1.3 percentage points in October 1949.
Grim as the scenario painted by the analsis is, reality may be even worse. The researchers wrote that the actual tally of claims “could be substantially higher.” Not all unemployed workers are able to file unemployment insurance claims either, and for those that do, they’ll get about half—or less—of their regular income. The end of the coronavirus crisis is also not in the immediate future.
All that points to the need for the federal government to provide states with more aid.
“American working families are paying a large price through no fault of their own,” wrote Sojourner and Goldsmith-Pinkham. “But there is no shortcutting public health to get the American economy back to work. A healthy economy requires public health.”
Story cited here.