U.S. Jobless Claims Top 20 Million Since Start of Shutdowns

Another 5.2 million Americans filed for unemployment benefits last week, bringing the total seeking aid in a month of coronavirus-related shutdowns to 22 million and showing a broad shock for the U.S. labor market.

Total claims filed in the week ended April 11 were down from the 6.6 million filed the prior week, the Labor Department said Thursday. For the March 28 week, 6.9 million claims were filed, and 3.3 million the week before. Prior to the pandemic, the largest number of Americans to ask for unemployment benefits in a four-week stretch was 2.7 million, in the fall of 1982.

Thursday’s report also showed 12 million Americans received unemployment payments in the week ended April 4, a record high. That is up from 7.4 million the prior week, which exceeded the highest level set in the 2007-2009 recession.

“It might take until mid-May or longer before we see claims declining” to much lower levels, University of Michigan labor economist Daniil Manaenkov said ahead of the latest data. “It could take until we see the economy partially reopen.”

More Americans are receiving enhanced jobless benefits of $600 a week on top of usual state payments, and additional workers are eligible to receive unemployment insurance under the federal stimulus package signed into law in March. The expansion of benefits could make it more attractive for workers to apply, keeping claims at very high levels.

Laid-off workers in 29 states should be receiving the extra $600 in weekly benefits, Labor Secretary Eugene Scalia said Wednesday. Other states will take longer to deliver the larger payments because they are relying on decades-old computer equipment. States will owe catch-up payments to workers backdating to the first week of April.

State officials expect another surge in claims as they begin to process applications for gig-economy workers and self-employed people who are newly eligible.