WASHINGTON Theeconomicshutdowncaused by coronavirus sparked an explosion of Americans filing for unemploymentbenefits,surging to 3.3 million last week — the highest number ever recorded, theLabourDepartment reported Thursday. Thenormally routine report is at the frontlines of the economic crisis caused by the outbreak, which has forced widespread closures of restaurants, shops and hotels and brought airline travel to a virtual halt, promptingthe stunningincrease in people filing for benefits nationwide in the week ending March 21. Nearly every state cited COVID-19 for the jump in initial jobless claims, with heavy impactsin foodservices,accommodation, entertainment and recreation, healthcareandtransportation,the reportsaid.Theincreasecomparesto 281,000 first time filersinthe prior week and blows awaythe previous record of 695,000 setin October 1982. In the same week of 2019, only 215,000 new claims were registered. Economistshadbeenwarning about a massive increase in thejoblesslevel, buttheconsensuscenteredaround 1.5million, which several cautioned was overly optimistic. Ian Shepherdson of Pantheon Macroeconomics correctly predicted what he called a “horrific” result, noting that New York state alone had received 1.7 million calls about benefits.— Reuters
