Another 6.6 million Americans filed for unemployment benefits last week

Another 6.6 million people filed for unemployment benefits last week, according to the US Department of Labor, as American workers continue to suffer from devastating job losses, furloughs and reduced hours during the coronavirus pandemic.

It was the second largest number of initial unemployment claims in history, since the Department of Labor started tracking the data in 1967.
Altogether, roughly 16.8 million American workers, making up about 10% of the US labor force, have sought aid in the form of jobless benefits in just the prior three weeks alone. About 7.5 million workers received their second week of benefits or more last week.

Numbers at that level are startling and contrast starkly with any other economic downturn on record, especially because of how quickly they've surged.

Job losses during the Great Recession for example — as deep as they were — came at a much slower pace. It took two years for 8.6 million Americans to lose their jobs in that crisis. This time around, as businesses across the country close to slow the spread of coronavirus, the unemployment crisis has been far more acute, condensed into just a few weeks.

Economists are expecting job losses will continue, with the unemployment rate peaking in the double digits sometime in the next few months, up from 4.4% in March.

"This week's unemployment insurance claims are yet another indication of the recessionary dynamics created by the coronavirus pandemic," said Moody's Senior Vice President Robard Williams in emailed comments.

That said, the government's economic relief package and policies by the Federal Reserve -- including $2.3 trillion worth of loans announced Thursday morning -- will soften the blow a little bit.