Colorado Politics

April jobless rate spikes to 14.7%, highest since Great Depression; historic 20.5M jobs lost

The economy lost 20.5 million jobs in April, the Labor Department reported on Friday, as the coronavirus wreaked a historic amount of havoc on employment.

The unemployment rate also skyrocketed to 14.7% in April, up from 4.4% in March.

Friday’s report is the worst on record. The federal government has never reported more monthly job losses since it began charting them in 1939. There has also not been a higher monthly unemployment rate since it began tracking it in 1948. The highest annual unemployment rate was 24.9% in 1933, during the Great Depression.

April’s job losses exceed the number of positions that have been created since 1998.

Two of the sectors hardest-hit by the virus are the travel and tourism industries. Flight cancellations, closed hotels, and shuttered attractions because of the virus are expected to cause the loss of 8 million jobs in the United States and over 100 million worldwide, according to a report by the World Travel and Tourism Council.

The restaurant industry has also taken it on the chin. The sector is projected to lose $80 billion in sales by the end of April, according to the National Restaurant Association.

The country faces the risk that shutdowns meant to slow the spread of the virus could, if extended long enough, generate a depression. A new Society for Human Resource Management survey shows that 12% of small-business owners said their businesses could not last another month, and 52% said they would close within six months.

Washington has enacted a series of bills totaling more than $2.5 trillion to provide relief. The House is expected to vote on an additional piece of legislation when it returns next week.

 
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