Last week's spike in unemployment claims was worse than any during the Great Recession
The number of unemployment insurance claims in the United States has risen by 70,000 in just one week, but economists warn the worst is yet to come.
The Labor Department on Thursday reported 281,000 new unemployment claims for the week ending on March 14, an increase of about 70,000 from the week prior, per Politico. This comes as the global COVID-19 coronavirus pandemic takes a toll on the U.S. economy and forces business to lay off workers, and as the Dow Jones Industrial Average erases just about all of its gains over the past three years.
Economist Paul Krugman notes this spike is worse than any week during the Great Recession, although he writes that since the data is not up to date and is actually from a week ago, the "next report will be much worse." According to Forbes, the quickest weekly jump in unemployment claims during the Great Recession was 14 percent, but this week's jump was 33 percent.
Subscribe to The Week
Escape your echo chamber. Get the facts behind the news, plus analysis from multiple perspectives.
Sign up for The Week's Free Newsletters
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
From our morning news briefing to a weekly Good News Newsletter, get the best of The Week delivered directly to your inbox.
"It's more than double anything we saw on a percentage basis during the height of the Great Recession, and it's going to get exponentially worse, much as the testing reveals the virus is spreading,” economist Diane Swonk told CNBC. "We could see it up to 600,000 by next week."
Indeed, Politico writes that "reports from unemployment insurance offices around the country indicated the real explosion in claims began this past weekend, and continued unabated this week."
Treasury Secretary Steven Mnuchin reportedly warned lawmakers this week that if no action is taken in response to the coronavirus pandemic, the U.S. unemployment rate could reach 20 percent, although he said Wednesday, "we're not going to let that happen."
Create an account with the same email registered to your subscription to unlock access.
Sign up for Today's Best Articles in your inbox
A free daily email with the biggest news stories of the day – and the best features from TheWeek.com
Brendan worked as a culture writer at The Week from 2018 to 2023, covering the entertainment industry, including film reviews, television recaps, awards season, the box office, major movie franchises and Hollywood gossip. He has written about film and television for outlets including Bloody Disgusting, Showbiz Cheat Sheet, Heavy and The Celebrity Cafe.
-
Empty-nest boomers aren't selling their big homes
Speed Read Most Americans 60 and older do not intend to move, according to a recent survey
By Peter Weber, The Week US Published
-
Brazil accuses Musk of 'disinformation campaign'
Speed Read A Brazilian Supreme Court judge has opened an inquiry into Elon Musk and X
By Rafi Schwartz, The Week US Published
-
Disney board fends off Peltz infiltration bid
Speed Read Disney CEO Bob Iger has defeated activist investor Nelson Peltz in a contentious proxy battle
By Rafi Schwartz, The Week US Published
-
Disney and DeSantis reach detente
Speed Read The Florida governor and Disney settle a yearslong litigation over control of the tourism district
By Peter Weber, The Week US Published
-
Visa and Mastercard agree to lower swipe fees
Speed Read The companies will cap the fees they charge businesses when customers use their credit cards
By Peter Weber, The Week US Published
-
Reddit IPO values social media site at $6.4 billion
Speed Read The company makes its public debut on the New York Stock Exchange
By Peter Weber, The Week US Published
-
Housing costs: the root of US economic malaise?
speed read Many voters are troubled by the housing affordability crisis
By Peter Weber, The Week US Published
-
Feds cap credit card late fees at $8
speed read The Consumer Financial Protection Bureau finalized a rule to save households an estimated $10 billion a year
By Peter Weber, The Week US Published