US non-farm payrolls decreased by a staggering 20.5 million jobs in April as the coronavirus (COVID-19) pandemic batters the worlds biggest economy.
The unemployment rate rose to 14.7%, down from 4.4% in March, a postwar high highlighting the broad damage to the US labor market.
The April job losses alone far exceeded the 8.7 million in the last recession, when unemployment peaked at 10% in October 2009. The only comparable period came when the rate reached about 25% in 1933, before the government began publishing official statistics.
READ: FTSE 100 closes below 6,000 as traders mull dismal US jobs data
The Labor Departments monthly employment report on Friday will likely strengthen analysts expectations of a slow recovery from the recession caused by the pandemic.
Bleak data on consumer spending, business investment, trade, productivity and the housing market in underscoring the devastation unleashed by lockdowns imposed by states and local governments in mid-March to slow the spread of COVID-19, the respiratory illness caused by the virus.
The economic crisis spells trouble for President Donald Trumps bid for a second term in the White House in November. After the Trump administration was criticized for its initial reaction to the pandemic, Trump is eager to reopen the economy, despite a continued rise in COVID-19 infections and dire projections of deaths.
The historic dive in jobs hit nearly all sectors of the economy, with larger layoffs in the leisure and hospitality industry — mainly restaurants and bars. They cut 7.6 million jobs, at least temporarily, as Americans stayed home.
Read More – Source
[contf]
[contfnew]
Proactiveinvestors
[contfnewc]
[contfnewc]
