This archive report was first published on 4 June 2020.
US Unemployment Crisis Deepens Amid Record Trade Drop ¶
As the US economy struggles to recover from the coronavirus pandemic, new data has revealed a record plunge in US exports and a surge in unemployment claims.
According to the Labor Department, 1.87 million workers filed new jobless claims last week, a decline of 249,000 from the previous week but still a staggering figure nearly three times higher than the weekly record in the pre-pandemic economy.
Since mid-March, more than 42 million workers have lost their jobs, at least temporarily, with 21.5 million people receiving benefits in the week ended May 23.
The insured unemployment rate ticked up half a point to 14.8 percent, a grim omen for the May jobs report, which is expected to show national unemployment increasing to closer to 20 percent from 14.7 percent in April.
Despite the bleak economic picture, Wall Street indices opened lower but were trending upwards by mid-morning, continuing a rally that had the tech-rich Nasdaq nearing its all-time high at the close of trading on Wednesday.
However, Jared Bernstein, senior fellow at the Center on Budget and Policy Priorities think tank, warned that high unemployment is here to stay, with the national unemployment rate likely to remain at or above 20 percent for the foreseeable future.
Meanwhile, the Commerce Department reported that US exports and imports dropped by a record amount in April, with the trade deficit jumping more than $7 billion to $49.5 billion.
Exports of US goods and services fell more than 20 percent or $39 billion to $151.3 billion, the lowest level in 10 years, while imports dropped to $200.7 billion, a more modest 13.7 percent or $32 billion decrease.
