Jobs Losses Hit Historic 36.5 Million Over 2 Months As Additional 3 Million Americans Join Unemployed Ranks

The Associated Press: 36 Million Have Sought US Unemployment Aid Since Virus Hit
Nearly 3 million laid-off workers applied for U.S. unemployment benefits last week as the viral outbreak led more companies to slash jobs even though most states have begun to let some businesses reopen under certain restrictions. Roughly 36 million people have now filed for jobless aid in the two months since the coronavirus first forced millions of businesses to close their doors and shrink their workforces, the Labor Department said Thursday. (Rugaber, 5/14)

CNBC: Weekly Jobless Claims Total 2.981 Million As Unemployment Crisis Continues
Economists surveyed by Dow Jones had been expecting 2.7 million new claims. Stock market futures moved lower following the numbers and pointed to another losing day on Wall Street. (Cox, 5/14)

Bloomberg: U.S. Jobless Claims In Millions Again, Higher Than Expected
The worse-than-expected data underscore the ongoing devastating impact of the coronavirus as dine-in restaurants and retailers remain largely closed and concerned Americans stay inside rather than spend. Federal Reserve Chairman Jerome Powell on Wednesday outlined a more-troubling economic scenario posed by the possibility of mass bankruptcies and unemployment. “Long stretches of unemployment can damage or end workers’ careers as their skills lose value and professional networks dry up, and leave families in greater debt,” Powell said in remarks to a virtual event hosted by the Peterson Institute for International Economics. (Dimitrieva, 5/14)

The Washington Post: 3 Million Americans Filed Jobless Claims Last Week, Pushing Eight-Week Total To 36.5 Million
The flood of new claims threatens to add to the tension between President Trump and public-health officials over how quickly to try and restart parts of the economy, with Trump on Thursday alleging that some Democrats are trying to slow the process down in order to hurt him politically.(Romm, 5/14)

MarketWatch: Jobless Claims Climb Another 3 Million Amid Coronavirus Shutdowns
Not all of these employees are still out of work. Some have been called back to their jobs in industries deemed essential. Others have returned to their jobs as many states reopen parts of their economies, particularly in less populated areas where the coronavirus is mostly absent. Yet the unemployment rate has likely reached 20% unofficially, government data suggest, and it’s likely to rise again in May. (Bartash, 5/14)

The New York Times: ‘Rolling Shock’ as Job Losses Mount Even With Reopenings
Michelle Meyer, head of U.S. economics at Bank of America, said that even with the reopenings, she doubted that callbacks to work outnumbered additional layoffs from other sectors. The slowdown has been rippling beyond the early shutdowns in retail and hospitality to professional business services, manufacturing and health care.“In a sense, it’s a rolling shock,” she said. (Cohen and Hsu, 5/14)

The Wall Street Journal: Nearly 3 Million Sought Jobless Benefits Last Week
“The numbers are very high, but they’re stepping down every week, and I see no reason why that decline in filings wouldn’t continue,” Keith Hall, chief economist for the Council of Economic Advisers under former President George W. Bush said ahead of Thursday’s report. “Employers are likely poised to bring people back, but right now we’re in a holding pattern.” (Chaney and Guilford, 5/14)

Reuters: Millions More Americans File For Jobless Benefits As Coronavirus Layoffs Widen
Initial claims for state unemployment benefits totaled a seasonally adjusted 2.981 million for the week ended May 9, the Labor Department said on Thursday. While that was down from 3.176 million in the prior week and marked the sixth straight weekly drop, claims remain astoundingly high. (Mutikani, 5/14)

In other unemployment and economic news —

The New York Times: As Unemployment Soars, Lawmakers Push To Cover Workers’ Wages 
One of the most progressive lawmakers in the House and one of the most conservative in the Senate, staring down a pandemic-driven unemployment rate at its highest level since the Great Depression, have come to the same conclusion: It’s time for the federal government to cover workers’ salaries. As Congress prepares to wage a new battle over how to best aid workers and businesses devastated by the coronavirus crisis, Representative Pramila Jayapal, Democrat of Washington and a leader of the Congressional Progressive Caucus, and Senator Josh Hawley, Republican of Missouri and a rising conservative star, are both making the case to their party’s leaders that guaranteed income programs should be part of the federal relief effort. (Edmondson, 5/14)

The Wall Street Journal: Two Months Into Pandemic, Millions Of Workers Continue Filing Unemployment Claims
Two months into disruptions from the coronavirus pandemic, millions of U.S. workers continue to apply for unemployment benefits each week. More than 33 million Americans have filed unemployment claims in the seven weeks since the coronavirus led to widespread business closures in mid-March, and economists expect another 3 million filed last week. (Chaney and Guilford, 5/14)

The Wall Street Journal: Millions Are Calling About Unemployment Claims: What It’s Like To Be On The Other End Of The Call
It takes 41 days for Pennsylvania’s unemployment compensation office to respond to emails. When the answer finally comes, it may well be written by Angela Lowe. Ms. Lowe, a 41-year-old call center supervisor with a calm demeanor and raspy voice, works seven days a week replying to emails from the newly jobless and handling the more complex claims-related phone calls. A new email lands in her inbox every minute or so, and a notification flashes on her computer screen. At the same time, she said, she and her colleagues are answering calls and juggling online chats. “We’re doing two chats at a time,” she said. (Calvert, 5/14)

The New York Times: Fed Chair Warns The Economy May Need More As Congress Hesitates 
The Federal Reserve chair, Jerome H. Powell, delivered a stark warning on Wednesday that the United States was experiencing an economic hit “without modern precedent,” one that could permanently damage the economy if Congress and the White House did not provide sufficient financial support to prevent a wave of bankruptcies and prolonged joblessness. Mr. Powell’s blunt diagnosis was the latest indication that the trillions of dollars that policymakers have already funneled into the economy may not be enough to forestall lasting damage from a virus that has already shuttered businesses and thrown more than 20 million people out of work. (Smialek, Tankersley and Cochrane, 5/13)

Reuters: Storm Clouds Gather Over U.S. Stocks As Hopes Of Quick Recovery Fade
For weeks, hopes that massive stimulus from the Federal Reserve and U.S. government would set the stage for a recovery later in the year fueled a blistering rebound in stocks even as the worst drop-off in jobs since the Great Depression slammed the economy. But recent comments from top officials have undercut the case for a speedy economic recovery even as states ease lockdown restrictions, forcing investors to factor in a protracted downturn that would likely weigh on stocks while fueling flows to bonds and other safe-haven assets. (Krauskopf, 5/14)

The New York Times: Small-Business Loan Deadline Poses Test For Mnuchin
When big businesses like Shake Shack and the Los Angeles Lakers basketball franchise took millions of dollars’ worth of emergency loans intended for small businesses, Treasury Secretary Steven Mnuchin called such borrowing “outrageous,” narrowed eligibility and threatened to hold companies criminally liable if they did not give the money back. But in the last month, large companies have continued to take out big loans through the Paycheck Protection Program, including publicly traded firms with ready access to other forms of capital. (Reppeport and McCabe, 5/13)

ABC News: 1 Million New Yorkers Could Be Evicted Under COVID Without City Assistance: Report 
Homelessness in New York City could see a dramatic spike during the novel coronavirus pandemic if city leaders don't enact a plan to stabilize housing, a nonprofit has warned. More than 325,000 of New York City's lowest-income households -- almost 1 million people -- are at risk of severe income loss and may be unable to pay rent, according to Win, a nonprofit that provides temporary, emergency shelter to families with children experiencing homelessness. Win is a nonprofit partner of the city's Department of Homeless Services. (Torres, 5/13)

Cincinnati Enquirer: Coronavirus In Ohio: Self-Employed, Part-Time Workers Can Now Apply For Unemployment
After weeks of waiting, self-employed workers can apply for unemployment approved by the federal stimulus package.Ohio Department of Job and Family Services started accepting applications from self-employed workers, 1099 tax filers and part-time workers on Tuesday. The first payments will go out this weekend, Director Kimberly Hall told reporters Wednesday. (Balmert, 5/13)