ALL NEWS

41 million have lost jobs since virus hit, but layoffs slow

May 28, 2020, 6:57 AM

FILE - In this Thursday, April 2, 2020 file photo a sign explains the closure of a shop in the Pike...

FILE - In this Thursday, April 2, 2020 file photo a sign explains the closure of a shop in the Pike Place Market in Seattle. As the coronavirus outbreak has caused record number of people to seek unemployment benefits Washington state officials said Thursday that impostors have used the stolen information of tens of thousands of people to receive hundreds of millions of dollars in unemployment benefits. (AP Photo/Elaine Thompson,File)

(AP Photo/Elaine Thompson,File)

WASHINGTON (AP) — Roughly 2.1 million people applied for U.S. unemployment benefits last week, a sign that companies are still slashing jobs in the face of a deep recession even as more businesses reopen and rehire some laid-off employees.

About 41 million people have now applied for aid since the virus outbreak intensified in March, though not all of them are still unemployed. The Labor Department’s report Thursday includes a count of all the people now receiving unemployment aid: 21 million. That is a rough measure of the number of unemployed Americans.

The national jobless rate was 14.7% in April, the highest since the Great Depression, and many economists expect it will near 20% in May.

States are gradually restarting their economies by letting some businesses — from gyms, retail shops and restaurants to hair and nail salons — reopen with some restrictions. As some of these employers, including automakers, have recalled a portion of their laid-off employees, the number of people receiving unemployment benefits has fallen.

First-time applications for unemployment aid, though still high by historical standards, have now fallen for eight straight weeks. In addition to those who applied last week, an additional 1.2 million applied under a new program for self-employed and gig workers, who are eligible for jobless aid for the first time. These figures aren’t adjusted for seasonal variations, so the government doesn’t include them in the overall data.

Analysts are monitoring incoming economic data to gauge how consumers are responding as many retail establishments gradually reopen. Jobs won’t return in any significant way as long as Americans remain slow to resume spending at their previous levels.

Data from Chase Bank credit and debit cards shows that consumers have slowly increased their spending since the government distributed stimulus checks in mid-April. Consumer spending had plunged 40% in March compared with a year earlier but has since rebounded to 20% below year-ago levels.

Most of that increase has occurred in online shopping, which has recovered to pre-virus levels after having tumbled about 20%. But offline spending, which makes up the vast majority of consumer spending, is still down 35% from a year ago, according to Chase, after having plummeted 50% at its lowest point.

THIS IS A BREAKING NEWS UPDATE. AP’s earlier story is below:

The U.S. government is set to sketch its latest picture Thursday of the layoffs that have left tens of millions of people unemployed but have slowed as states increasingly allow businesses to reopen.

Even with companies calling some laid-off employees back to work, millions more likely filed for unemployment benefits last week after nearly 39 million sought aid in the previous nine weeks as the coronavirus paralyzed the economy.

The pace of layoffs has declined for seven straight weeks, a sign that the cratering of the job market may have bottomed out. By historical standards, though, the number of weekly applications remains enormous.

The job cuts reflect an economy that was seized by the worst downturn since the Great Depression after the virus forced the widespread shutdown of businesses. The economy is thought to be shrinking in the April-June quarter at an annual rate approaching 40%. That would be, by far, the worst quarterly contraction on record.

We want to hear from you.

Have a story idea or tip? Send it to the KSL NewsRadio team here.

Today’s Top Stories

All News

The OLRGC released an analysis of the expected topics to be discussed during a special session of t...

Simone Seikaly

Extending state flooding emergency, firearm restrictions, among topics for Utah special session

The OLRGC released an analysis of the expected topics to be discussed during a special session of the legislature.

11 months ago

A video recorded by Facebook user Larry Jacquez shows the police response following the shooting in...

Jamiel Lynch, CNN     

At least 3 people killed and 2 officers wounded in a shooting in Farmington, New Mexico, police say

Multiple people were shot and at least three killed in a shooting in Farmington, New Mexico, police said in a Facebook post.

11 months ago

A new release from Intermountain Healthcare shows that younger adults are becoming more susceptible...

Waverly Golden

Younger adults are becoming more susceptible to strokes

A new release from Intermountain Healthcare shows that younger adults are becoming more susceptible to stroke.

11 months ago

If you plan to camp over Memorial Day Weekend, you may want to begin the planning process now....

Allessandra Harris

Camping over Memorial Day Weekend? Plan ahead

If you plan to camp over Memorial Day Weekend, you may want to begin the planning process now.

11 months ago

slcpd on the scene of the deaths...

Josh Ellis

Police: Teen killed by father in murder-suicide in SLC office building

Police responded to the office complex near 3000 S. Highland Drive on Saturday after emergency responders received a call from a community member who reported finding a body.

11 months ago

Melissa Coleman crouches next to her husband, , Brad Coleman, of North Ogden, who sits in a wheelch...

Jenny Carpenter, KSL.com

Young stroke victim survives with quick, lifesaving treatment in northern Utah

After a 36-year-old man had a stroke, he and his wife say to be aware of the signs of stroke and that young people are also at risk.

11 months ago

Sponsored Articles

close up of rose marvel saliva blooms in purple...

Shannon Cavalero

Drought Tolerant Perennials for Utah

The best drought tolerant plants for Utah can handle high elevations, alkaline soils, excessive exposure to wind, and use of secondary water.

Group of cheerful team members high fiving each other...

Visit Bear Lake

How To Plan a Business Retreat in Bear Lake This Spring

Are you wondering how to plan a business retreat this spring? Read our sample itinerary to plan a team getaway to Bear Lake.

Cheerful young woman writing an assignment while sitting at desk between two classmates during clas...

BYU EMBA at the Marriott School of Business

Hear it Firsthand: 6 Students Share Their Executive MBA Experience at BYU’s Marriott School of Business

The Executive MBA program at BYU offers great opportunities. Hear experiences straight from students enrolled in the program.

Skier being towed by a rider on a horse. Skijoring....

Bear Lake Convention and Visitors Bureau

Looking for a New Winter Activity? Try Skijoring in Bear Lake

Skijoring is when someone on skis is pulled by a horse, dog, animal, or motor vehicle. The driver leads the skiers through an obstacle course over jumps, hoops, and gates.

Banner with Cervical Cancer Awareness Realistic Ribbon...

Intermountain Health

Five Common Causes of Cervical Cancer – and What You Can Do to Lower Your Risk

January is National Cervical Cancer Awareness month and cancer experts at Intermountain Health are working to educate women about cervical cancer.

Kid holding a cisco fish at winterfest...

Bear Lake Convention and Visitors Bureau

Get Ready for Fun at the 2023 Bear Lake Monster Winterfest

The Bear Lake Monster Winterfest is an annual weekend event jam-packed full of fun activities the whole family can enjoy.

41 million have lost jobs since virus hit, but layoffs slow