US unemployment rate soars to post-World War Two record high: Fed Reserve
The US Federal Reserve said the COVID-19 pandemic has led to an alarming surge in job losses, "with the unemployment rate, which had been at a 50-year low, soaring to a post-World War II record high". The central bank's remarks were part of its Monetary Policy Report submitted to Congress on Friday, reports Xinhua news agency. Photo: Reuters
Hit by COVID-19 pandemic
Since February, employers have shed nearly 20 million jobs from payrolls, reversing almost 10 years of job gains, the Fed said in the report, noting that the unemployment rate jumped to a post-World War II high of 14.7 per cent in April and then moved down to a still very elevated 13.3 per cent in May. Photo: Retuers
Warning by Jerome Powell
In a virtual press conference on Wednesday, Fed Chairman Jerome Powell pointed out this figure "likely understates the extent of unemployment", as was stressed by the Bureau of Labor Statistics. Photo: Reuters
Challenge for Donald Trump
The central bank chief voiced his concern that millions of Americans could be permanently unemployed from this crisis, adding that the US economy will likely need more fiscal and monetary support for a long time. Photo: Reuters
Concern for lower earning groups
The Fed also noted in the report that the most severe job losses have been sustained by those with lower earnings and by the socio-economic groups that are "disproportionately" represented among low-wage jobs. Photo: Reuters
Latest jobless claims
The number of initial jobless claims in the US totalled 1.54 million last week as reopening efforts continued across the nation, the Labour Department reported on Thursday. With the latest numbers, over 44 million initial jobless claims have been filed over the past 12 weeks as COVID-19-induced recession sent ripples through the US labour market, indicating the mounting economic fallout of the outbreak. Photo: Reuters
Gloomy outlok for US economy
It projected that the US economy will shrink by 6.5 per cent in 2020, followed by a 5 per cent gain next year. According to the central bank`s economic projection, the unemployment rate could fall to 9.3 per cent in the fourth quarter of this year, before reaching 6.5 per cent by the end of next year. Photo: Reuters