WASHINGTON (Reuters) – Millions more Americans likely sought unemployment benefits last week, lifting total filings for claims over the past month above an astounding 20 million, which would underscore the deepening economic slump caused by the novel coronavirus outbreak.
FILE PHOTO: People who lost their jobs wait in line to file for unemployment following an outbreak of the coronavirus disease (COVID-19), at an Arkansas Workforce Center in Fort Smith, Arkansas, U.S. April 6, 2020. REUTERS/Nick Oxford/File Photo
Thursday’s weekly jobless claims report from the Labor Department will follow dismal data on Wednesday showing a record drop in retail sales in March and the biggest decline in factory output since 1946.
Economists are predicting the economy, which they believe is already in recession, contracted in the first quarter at its sharpest pace since World War II.
Weekly jobless claims, the most timely data on the economy’s health, are being closely watched for clues on the depth of the downturn, when the waves of layoffs may let up and when a recovery might start.
“The decline in economic activity is breathtaking,” said Joel Naroff, chief economist at Naroff Economics in Holland, Pennsylvania. “While we will see an initial upturn once the economy reopens, the strength and length of that recovery is not clear at all.”
Initial claims for state unemployment benefits probably totaled 5.105 million