Unemployment benefits in Michigan. Over 16.7 million applications for unemployment benefits were filed in three weeks in the United States. The data was published on April 9 by the Ministry of Labor.
According to the agency, the total number of applications for benefits submitted between March 15 and April 4 of this year amounted to more than 16.7 million. From March 15 to 21, 3.3 million Americans applied for the benefit.
From March 22 to 28, the number of applications for unemployment benefits more than doubled and amounted to 6, 86 million. From March 29 to April 4, 6.6 million applications were registered.
In March, the US unemployment rate increased by 4.4%.
Fitch examined scenarios of rising unemployment in the US and several European countries
An increase of 15% in unemployment in the USA, Great Britain, Germany, France, and Spain will result in job losses for approximately 37 million people. Such a forecast was made by experts of the Fitch international rating agency, the organization’s press service said.
Fitch experts examined various scenarios of rising unemployment in the US, UK and major EU countries associated with the SARS-CoV-2 coronavirus pandemic. They suggested what would happen if unemployment increased by 5-15% of the average for the IV quarter of 2019.
Unemployment benefits in Michigan
In the US, the number of applications for unemployment benefits has jumped to a historical record level – over the past week, 6.65 million Americans have filed an initial application, the Washington Department of Labor said on Tuesday, April 2.
The previous week (3.3 million applications) has already exceeded the previous record in 1982, when the number of initial applications for benefits amounted to 695 thousand.
Federal Reserve economists predict that US unemployment, which was only 3.5 percent recently, will jump to a double-digit rate as a result of the coronavirus pandemic.
The number of initial applications for unemployment benefits is considered an important indicator of the state of the economy in the United States, since it reflects the situation on the labor market with only a week delay. A few weeks ago, this figure did not exceed 100 thousand applications.
The rapid spread of viral infection has paralyzed public life in many parts of the United States. Nearly three-quarters of the country’s 330 million people face quarantine restrictions imposed by state authorities. The country has closed many shops, restaurants and hotels, canceled a huge number of trips.
According to recent data, in the United States more than 5.5 thousand patients have already died from the effects of coronavirus. The number of infected has exceeded 230,000 people – more than in any other country in the world.
The coronavirus pandemic and forced business closures have hit Michigan workers and the state’s unemployment insurance system harder than almost every place in the nation, according to a Bridge Magazine analysis of jobless benefit claims data.
Despite widespread complaints over a sluggish website and slammed call center, the Michigan Unemployment Insurance Agency successfully processed 817,185 initial benefits claims between March 15 and April 4, second only to the significantly more populous state of California.
Jobless Benefits in Michigan
Michigan typically gets hit harder by recessions than other states because of its economic reliance on durable goods manufacturing, said Don Grimes, an economist at the University of Michigan.
“So we’re always going to get more claims for unemployment insurance, partly reflecting the fact that our unemployment rate is going to be much higher than the nation.”
U-M economists are now projecting Michigan will lose 1.2 million payroll jobs through mid-year, which will cause the state’s unemployment rate to skyrocket to 23 percent, surpassing the state’s previously recorded high of 16.4 percent in 1982. By comparison, they expect the national unemployment rate to top out at 14 percent during the pandemic.
The good news: The federal government’s $2 trillion rescue package, including expanded unemployment benefits and the “paycheck protection program” for small businesses, should speed up the eventual recovery.
Michigan will replace three-quarters of those lost jobs by the third quarter of 2022, according to the new U-M forecast. Still, the state will not be fully recovered by the end of 2022.
“Some businesses are going to be shut down, and some employment relationships are going to be destroyed,” said Gabe Ehrlich, associate director of the university’s research seminar in quantitative economics. “It takes those people time to find new jobs.”