Jobless Claims Total 36.5 Million… 40% Of Low-income Workers Fired In March… Wave Of Bankruptcies Poses Next Threat

Weekly jobless claims total 2.981 million, bringing coronavirus tally to 36.5 million

 POINTS
  • New claims for unemployment insurance totaled 2.981 million last week.
  • That brings the rolling total during the coronavirus crisis to 36.5 million, though the weekly tally has declined for six straight weeks.
  • Economists surveyed by Dow Jones had been expecting 2.7 million claims.

Nearly 40% of low-income workers lost their jobs in March

New York (CNN Business)The Federal Reserve Bank on Thursday reported just how unequally the coronavirus-induced economic downturn is hitting Americans.

On one hand, lower-income people are getting slammed. Nearly 40% of those with a household income below $40,000 reported a job loss in March, according to the Economic Well-Being of US Households report.
At the same time, for the majority of adults, their income and ability to pay current bills appeared to remain generally stable during the initial weeks of the coronavirus pandemic. Also essentially unchanged was the percentage of people who reported they could pay off an unexpected $400 emergency expense entirely using cash, savings, or a credit card at the next statement.

Wave of COVID-19 bankruptcies poses next threat to US economy

New York (AFP) – Larger companies have generally survived the initial blow from the coronavirus crisis, but still face existential challenges to get through what will probably be a long and grinding recovery.

Since COVID-19 shuttered much of the global economy, airlines, major retail chains, oil companies and other hard-hit businesses have been able to tap bank facilities and public debt markets for the funds they need to keep paying the bills and stay afloat.

But many firms now bleeding cash are in for a tough ride until the economy fully rebounds, which likely will come only after a vaccine is developed and broadly employed.

That has raised worries about a much bigger wave of bankruptcies beyond the handful of retailers that have sought to restructure through the US process known as “Chapter 11.”

 

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