Jobs report expected to show biggest labor market shock in U.S. history

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Analysts say steep jump in unemployment and layoffs will be hard to reverse quickly.

The U.S. economy suffered perhaps its biggest labor market shock in history last month, as government figures to be released Friday are expected to show the COVID-19 pandemic erased 20 million or more jobs and sent the nation’s unemployment rate to about 16%, the highest since the Great Depression of the 1930s.

All that makes predicting the extent of the economic damage and the shape of a recovery very hard. But most analysts foresee deep damage and a very slow recovery.Even where businesses are reopening, many are operating only partially, with limits on capacity and relatively few workers on hand. Customer demand remains unknown and start-up expenses may be wasted if new outbreaks occur, forcing another round of shutdowns.

Ezekiel Yu, 23, of Plano, Texas, was working two part-time jobs, at Angelika Film Center & Cafe and Barnes & Noble, before he was laid off from both in March. He said the layoffs were temporary, but he hasn’t heard about a return date from Barnes & Noble, and though Angelika was likely to recall him sometime in July, Yu said he’s not sure he’s ready to go back to work.

“In any economic downturn the most disadvantaged people are the ones that ultimately get hurt the most,” said Nick Bunker, economic research director at Indeed Hiring Lab. “The danger is many of those businesses are not viable in the post-pandemic world, and that’s why there are going to be permanent job losses,” Davis said. “And so, using taxpayer funds to delay the inevitable is not only costly but actually slows the adjustment of the economy.”

 

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Bigger story, citizens forbidden to go to work by mostly Democrat Governors and Mayors to make the jobless numbers look bad. Coronavirus LiberalLogic

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