PortandTerminal.com, March 20, 2020
Goldman Sachs is forecasting that 2.25 million Americans filed for their first week of unemployment benefits this week — eight times the number of people who filed last week and the highest level on record
NEW YORK CITY – Investment bank Goldman Sachs’ economists have published a grim update yesterday on the number of people in the United States who are losing jobs as a result of the coronavirus pandemic.
Early Thursday, a government report showed 281,000 Americans filed for their first week of unemployment benefits last week. It was a sudden 33% jump over the week before and the biggest percentage increase since 1992.
Anecdotes from across a wide range of sectors suggest an unprecedented decline in revenues across many industriesGoldman Sachs, March 19, 2020
The authors of the report expect things to quickly get worse.
They predict the report will show 2.25 million Americans filed for their first week of unemployment benefits this week — eight times the number of people who filed last week and the highest level on record
That estimate is based on news reports of an unprecedented surge in layoffs early in the week. Airlines, restaurants, hotels, sports events and retailers are all struggling to cope with a sudden drop in revenue, as people stay home to prevent the spread of the virus.
State-level anecdotes point to an unprecedented surge in layoffs this weekGoldman Sachs, March 19, 2020
Florida’s Department of Economic Opportunity received 76,000 calls between just Monday and Wednesday, up from about 28,000 calls for the entire week before.
On Thursday, New York State’s Department of Labor had received 159,000 calls, all before noon. CNN reports that the agency usually the agency gets approximately 10,000 calls a day.
The Goldman Sachs economists noted that although it’s possible unemployment claims slowed down later in the week, even a conservative estimate suggests more than 1 million people filed initial jobless claims this week — more than the highest level on record of 695,000 in the week ending October 2, 1982.
Other investment banks are reporting equally grim numbers. JPMorgan Chase estimates that the US economy could shrink by 14% b/t April & June, the biggest contraction post-World War II.
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