WASHINGTON–Credit unions that haven’t yet put in place options to help members affected by the coronavirus’ shutdown of the economy, such as skip-a-pay options, may have little choice now after numbers released by the Department of Labor today show initial jobless claims surged to 3.28 million in the week ended March 21.
The number is by far the biggest ever reported since the Department of Labor began tracking the data in 1967. The previous high was 695,000 claims filed in the week ending Oct. 2, 1982.
The jump reflects a huge increase from a revised 282,000 claims in the prior week. Prior to the pandemic, initial claims had been hovering in the low 200,000s each week, reflecting a strong job market. Indeed, credit unions have spent much of the past few years discussing how difficult it is to find and retain employees.
The surge in jobless claims comes one day after the Senate OK’d a huge $2-trillion rescue package in response to the coronavirus that includes cash payments to many Americans as well as expanded unemployment benefits, as CUToday.info reported here.
CNN quoted several economists who expect the job losses will only grow in the coming weeks.
Heidi Shierholz, a former chief economist for the US Department of Labor who is now with the Economic Policy Institute, told CNN the huge increase in unemployment claims is just the tip of the iceberg.
"We estimate that by summer 14-million workers will lost their jobs due to the coronavirus shock," she said in a tweet, according to CNN.
As CUToday.info has also reported, numerous economists, including those within credit unions, now expect the US economy to fall into a recession in the second quarter, although many also predict a strong comeback later this year if and when the virus is brought under control.