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The US’s weekly Labor Department statistics have just been released and show that another 3.8 million Americans signed up for unemployment benefits last week, bringing the rough toll of job losses since the pandemic to 30 million. Economists are pointing out that the impact of the virus has decimated the new jobs created since the Great Recession. According to the Washington Post, “There is no precedent for figures like this in modern American history.” Meanwhile a study by the Economic Policy Institute earlier in the week pointed out that even the 30 million figure might be a serious underestimate as states grapple with overwhelming demand for leaving government agencies unable to handle the flood of unemployment claims. According to EPI, “an additional 8.9–13.9 million people could have filed for benefits had the process been easier.” An analysis of the newly unemployed shows that in the early weeks of the pandemic, so-called “full contact” industries suffered the most job losses, followed by producers, those working in the supply chain, and white collar workers. Now, even public sector jobs are being lost – at a time when there is the greatest need for public services. The Labor Department’s figure came on the same day that the Commerce Department announced that consumer spending decreased by a whopping 7.5%.
Rising Up with Sonali May 1, 2020 -
If anything, the job losses may be far worse than government figures indicate, according to many economists. A study by the Economic Policy Institute found that roughly 50 percent more people than counted as filing claims in a recent four-week period may have qualified for benefits but were stymied in applying or did not even try because they found the process too formidable.
“The problem is even bigger than the data suggest,” said Elise Gould, a senior economist with the institute, a left-leaning research group. “We’re undercounting the economic pain.”
The New York Times May 1, 2020 -
The average monthly cost of child care for a 4-year-old in Texas is $589 per month, according to the nonpartisan think tank the Economic Policy Institute. A 2019 EPI report states that a minimum wage worker in Texas would need to work full time for more than seven months to pay for child care for one infant, whose average monthly child care cost is $777.
Rivard Report May 1, 2020 -
Still, a survey by the left-leaning Economic Policy Institute found that for every 10 people who have successfully filed unemployment claims, three or four people have been unable to register and another two people have not tried to apply.
Reuters May 1, 2020 -
The crisis has seen the largest number of workers filing unemployment claims in US history, about one sixth of the total workforce. Millions more workers have lost their employment but have not filed claims because of their immigration status or because they were self-employed, contract workers or others who typically are not eligible. In addition, the Economic Policy Institute (EPI) estimated 12 million workers did not file claims because state unemployment claims systems were overwhelmed making it too difficult.
World Socialist Web Site May 1, 2020 -
And while the federal government has bolstered unemployment insurance benefits, state-level systems have buckled under the pressure. Epic call waits to understaffed agencies and constant timeouts on flimsy application portals have hampered the federal Covid-19 response. According to new research from the Economic Policy Institute, for every 10 people who successfully filed for unemployment over the last four weeks, three or four eligible workers couldn’t get through; another two people didn’t bother because the process was so difficult. CityLab May 1, 2020 -
More than 30 million Americans have filed for unemployment insurance due to the coronavirus pandemic, including another 3.8 million Americans who filed claims last week, according to the Labor Department. Since businesses began to close to slow the spread of the virus six weeks ago, 30.3 million Americans have filed claims. But the number is likely higher because many people have struggled to file unemployment insurance as systems have been bogged down by the staggering number of claims. CBS News campaign reporter Adam Brewster says a survey from the Economic Policy Institute found that for every ten people who successfully filed for benefits, another five to six either could not get through to make a claim or didn’t try because it was too difficult to do so.
“Millions of the newly jobless are going without benefits as the unemployment system buckles under the weight of new claims,” EPI economists Ben Zipperer and Elise Gould wrote. Thursday’s Labor Department report also showed that 12.4% of American workers were receiving unemployment benefits for the week ending April 18. Before the pandemic, the highest weekly percentage recorded was 7% back in 1975. The peak during the Great Recession was 5% during two different weeks in May and June of 2009.CBS May 1, 2020 -
The true number of people out of work is certainly much higher, as many have not been able to file for jobless aid. A survey from the Economic Policy Institute found that, for every 10 people who successfully filed for unemployment benefits, between five and seven others either couldn’t apply or were too discouraged to try.
“Millions of the newly jobless are going without benefits as the unemployment system buckles under the weight of new claims,” wrote EPI researchers Ben Zipperer and Elise Gould.
CBS News May 1, 2020 -
As policymakers scramble to try to mitigate the economic fallout of the coronavirus shock, a predictable chorus has emerged worrying that these efforts will lead to damaging increases in the nation’s public debt. The Washington Post and New York Times have been among the outlets sounding alarms over the implications of increased government spending. And even Senate Majority Leader Mitch McConnell (R-Ky.) warned against further economic stimulus, saying: “given the extraordinary numbers that we’re racking up to the national debt … we need to be as cautious as we can be.”
In These Times May 1, 2020 -
For every 10 people who successfully filed for unemployment insurance benefits over four weeks in March and April, an additional three to four people tried and failed to make claims, according to a survey released Tuesday by the Economic Policy Institute.
“These findings imply the official count of unemployment insurance claims likely drastically understates the extent of employment reductions and the need for economic relief during the coronavirus crisis,” the study’s authors, Ben Zipperer and Elise Gould, wrote.
CNBC May 1, 2020