Record 6.6 Million Americans Sought Unemployment Benefits Last Week

A record 6.6 million workers applied for unemployment benefits last week, marking a sharp downturn in the labor market caused by the new coronavirus.

The large number of claims comes after 3.3 million sought benefits two weeks ago as the U.S. shut down parts of the economy in an effort to contain the virus. Jobless claims, a proxy for layoffs, provide temporary financial assistance for workers who lose their jobs.

More Americans are expected to have filed for unemployment benefits in the past two weeks than in the prior six months, marking a drastic downshift in the U.S. labor market caused by the coronavirus pandemic.

Economists surveyed by The Wall Street Journal expect about 3.1 million Americans filed for jobless benefits last week after a record 3.3 million sought benefits two weeks ago as the U.S. shut down parts of the economy in an effort to contain the virus. Jobless claims, a proxy for layoffs, provide temporary financial assistance for workers who lose their jobs.

“The speed and magnitude of the labor market’s decline is unprecedented,” said Constance Hunter, chief economist at KPMG LLP. Ms. Hunter said she expected that millions more claims will be filed in the coming weeks and projects 20 million jobs will be lost.

There are several reasons why unemployment claims are likely to remain high in the coming weeks. For one, many states haven’t fully processed all unemployment-benefit applications due to the deluge. Further, the federal rescue package signed into law last week increases the pool of workers who can tap benefits by making independent contractors and self-employed individuals eligible.