US unemployment claims hit record 6.6 million amid coronavirus outbreak

More than 6.6 million Americans applied for unemployment benefits last week, doubling a record high set just one-week prior. The number of Americans using the benefits represents a massive sign that layoffs are accelerating amid the coronavirus.

The Labor Department reported that job cuts are mounting against the backdrop of economies in the United States and overseas that have nearly sunken into a severe recession as businesses close across the globe.

Applications for unemployment benefits generally reflect the pace of layoffs. Combined with last week’s report of 3.3 million people seeking unemployment aid two weeks ago, the U.S. economy is now suffering from nearly ten million layoffs within the past several weeks, exceeding the figure for any corresponding period on record.

State officials who handle unemployment have bombarded with a surge of online and telephone claims.

The increase in layoffs has led many economists to predict as many as 20 million lost jobs by the end of April. This number would be more than double the 8.7 million jobs lost during the Great Recession. Unemployment rates can rise as high to 15% this month, breaking the previous record of 10.8% set during a deep recession in 1982.

Many employers are slashing their payrolls to try to stay afloat due to revenue collapsing, especially ay restaurants, hotels, gyms, movie theaters, and other venues that rely on face-to-face interaction. Auto sales have decreased, and factories have closed.

More than two-thirds- of the U.S. population are under stay-at-home orders, enforced by most U.S. states. Intensifying pressure on business, most of which face rent, loans, and other bills that must be paid.

The White House and Congress have expanded the unemployment benefits system in last week’s $2.2 trillion economic rescue package. The legislation added $600 a week in jobless aid, on top of what recipients receive from the state. This will enable many lower-income workers to collect budget their expenses and even increase their purchasing power and support the economy.