HEI: 36.5 million and counting

© Toniflap

THE HEISENBERG writes:

Fingers crossed that those describing their predicament as “temporary” are correct.

2.98 million Americans filed for unemployment benefits last week, the latest sign that the impact of lockdown measures imposed to stop the spread of COVID-19 is still being felt in the labor market, where the unemployment rate is now the highest since the Depression.

The latest jobless claims figures were considerably worse than expected. Economists were looking for “just” 2.5 million on the headline. The previous week’s total was revised up to 3.17 million. Continuing claims perhaps offers some hope, but let’s face it: At 22.8 million, the notion that anyone should point to the figure as a sign of “stabilization” is wholly laughable.

For the week ended May 9, the four-week moving average is 3.6 million, down from 4.17 million.

The latest claims data comes on the heels of the worst monthly jobs report in US history, and amid dire warnings about structural damage to the US economy.

A long list of Fed officials this week cautioned that without sufficient fiscal support, a wave of bankruptcies may be in the offing. Jerome Powell drove the point home with an overtly foreboding assessment delivered during a webinar on Wednesday.

To read the full post, please click here (sub may be required).