MNI DATA PREVIEW: US Claims Seen 3.5M Taking Virus Cuts to 30M

By Brooke Migdon

     WASHINGTON (MNI) - Another 3.5 million U.S. weekly jobless claims are

likely coming in figures due Thursday as businesses remain closed due to the

coronavirus, though initial claims may begin to slow as states consider

re-opening.

     The still-elevated figure in the Bloomberg forecast would be smaller than

the previous two readings of 4.4 million and 5.2 million. It's strong evidence

the first wave of people who overwhelmed state benefit websites as they were

laid off is passing. 

     This week's consensus increase would still push claims tied to

coronavirus-related shutdowns near 30 million, about 10% of the total U.S.

population. Initial claims reported by the Labor Department have shattered

records dating back to 1967 for more than a month and should drive unemployment

to at least 15%, the highest since the Great Depression.

     The Labor Department said last week initial claims are still being driven

by coronavirus shutdowns and continuing claims will surge in tandem.

     Continuing claims spiked last week to a record 16 million from 12 million.

Analysts at Goldman Sachs see continuing claims rising to 19 million Thursday.

     South Carolina and Georgia partially re-opened last week, putting some

Americans back to work for the first time in nearly a month, and claims could

fall further with other stay-at-home orders set to expire. Some experts warn

that premature re-openings could lead to a second wave of infections and

business closures.

--MNI Washington Bureau; +1 202 371 2121; email: brooke.migdon@marketnews.com

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