Shannon Roddel | March 29, 2020
The U.S. Department of Labor reported March 26 that jobless claims from Americans displaced by the coronavirus pandemic soared to 3.28 million — a record high, shattering the Great Recession peak of 665,000 in 2009 and the all-time mark of 695,000 in 1982.
It will get much worse before it gets better, according to economist Jason Reed, assistant chair and teaching professor of finance at the University of Notre Dame's Mendoza College of Business.
"Unsurprisingly, with the country on lockdown, the number of jobless claims jumped to over 3 million, a 1064 percent increase from the previous week,” Reed said. “I expect this number to keep rising as workers heed orders to shelter in place.”
With a historic coronavirus bailout package being fast-tracked through Congress, fiscal stimulus is on the way, but Reed said “we’re not out of the woods yet.”
“The state of jobless claims and unemployed workers will certainly get worse before it gets better,” he said.
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