Initial claims for unemployment insurance were 3.839 million in the week ending April 25, down 603,000 from the previous week’s total of 4.442 million (revised up from 4.427 million). The four-week moving average of claims through April 25 was 5.033 million, down from 5.790 million.Although initial claims are gradually slowing, they remain extremely elevated. In early March, before the coronavirus started to hit the U.S. labor market, initial claims were slightly above 200,000 per week. Over the course of three weeks they skyrocketed to almost 7 million per week in late March and early April. This was almost ten times the previous all-time high of just below 700,000 in 1982.
Comments from state labor departments indicate that claims are now falling in most industries.
Claims have since fallen by about 45 percent from their peak in the week ending March 28, but are still astronomical. Over the past six weeks claims have totaled more than 30 million, or about 18 percent of the pre-coronavirus labor force. The April jobs report, to be released on Friday, May 8, will be the worst in history. Employment fall by more than 10 million, and the unemployment rate will shoot up to above 10 percent, from 4.4 percent in March and 3.5 percent in February.
