Jobless claims spike to 3.28 million as coronavirus impact spreads

Jobless claims soared to 3.28 million in the past week, the Labor Department said Thursday, as the coronavirus outbreak affected wide portions of the economy.

The figure was more than four times higher than the previous weekly record of 695,000, set in October 1982. During the previous week in March, 281,000 people had filed unemployment claims.

Most economists had forecast about 1.5 million people filing for unemployment benefits.

The true number of out-of-work Americans is likely much higher; self-employed people and gig workers don’t file for unemployment benefits.

The Senate late Wednesday night approved a $2.2 trillion economic rescue package that includes $250 billion in expanded unemployment benefits and increased eligibility. It would cover the self-employed and gig workers.

It also has $350 billion for small businesses to retain their workforce. The House is expected to vote on the package on Friday; President Trump has said he’ll sign it immediately.

Federal Reserve Chairman Jerome Powell said Thursday the economy may well be in a recession already.

“We know that economic activity will decline probably substantially in the second quarter,” Mr. Powell said on NBC’s “Today” show. “I would expect economic activity to resume and move back up in the second half of the year.”

He said there is “nothing fundamentally wrong” with the U.S. economy.