Jobless Claims Expected to Remain Over 6 Million for a Second Week

Unemployment claims to remain high even after nearly 10 million people applied for benefits in the last two weeks. 

Rising Unemployment Numbers Expected

The jobless claims numbers will likely keep growing due to businesses shutting down as a result of the coronavirus outbreak and the measures taken to contain the spread. Layoffs and furloughing workers are common in companies now, as they struggle to save money to avoid bankruptcy. 

The previous week’s record high of 6.6 million could be topped as up to 50 million jobs are at risk due to the layoffs related to the virus, based on the state and federal governments’ determination of non-essential positions. 

Some of the newly unemployed or self-employed, however, are struggling to apply for benefits, as the government’s $2.2 trillion stimulus pack extends benefits to some who weren’t previously eligible like gig workers, independent contractors, and self-employed individuals. Furthermore, many states haven’t updated their sites to match the new rules, causing bottlenecks. 

The US economy is also likely to shrink at a 30% annual rate in the April-June quarter, former Federal Reserve chair Janet Yellen said Monday.