A new report by Goldman Sachs claims that unemployment claims will surge almost 10X this week, from the current 281,000 to 2,250,000.
This is stunning, but not surprising given the virtual shutdown of entire states and major cities.
Goldman Sachs warns data point to a historic and frankly apocalyptic surge in unemployment insurance claims, from current 281,000 to 2,250,000 in next week’s report. Yes you read that right. pic.twitter.com/KX7oDfu8fe
— Michael S. Derby (@michaelsderby) March 20, 2020
More via Daily Mail:
The shock figures come as the hospitality industry is facing a dire future, with the CEO of major hotel chain Best Western warning that ‘it’s very bad… this is the worst decline that the industry has ever seen’.
The Labor Department reported Thursday that applications for benefits, a good proxy for layoffs, surged by 70,000 to 281,000 claims last week.
But Goldman Sachs has predicted that the impact of the outbreak on US jobs is actually far worse than these figures suggest.
The investment group predicted that a record 2.25 million Americans could enter claims for unemployment benefits this week, as state-wide closures have forced businesses to hunker down and lay off thousands of staff.
This would mark the biggest rate of unemployment claims in US history, dwarfing the previous record of nearly 700,000 set in 1982, adding to woes that the country is entering a recession.
‘Many US states have reported unprecedented surges in jobless claims this week,’ David Choi, a Goldman Sachs economist said in a research note.
The President and his team continue to claim this is all necessary to save lives and to prevent the implosion of our healthcare system.
We support President Donald Trump and his coronavirus task force but know that massive economic pain, the likes of which we have not seen in this generation, may be coming if this does not end relatively soon.
We hope all of the economic pain is worth it.