US unemployment rate jumps to 14.7 per cent as economy loses 20.5 million jobs

An unprecedented 20.5 million Americans lost ir jobs in April and unemployment rate in US jumped to 14.7 per cent, highest level since Great Depression, as coronavirus pandemic severely curtailed operations in world’s largest ecomy.

Department of Labor anunced Friday that US unemployment rate rose to 14.7 per cent from just 4.4 per cent in March and a near 50-year low of 3.5 per cent in February before US was hit by virus.

“Total nfarm payroll employment fell by 20.5 million in April, and unemployment rate rose to 14.7 per cent,” US Bureau of Labor Statistics reported Friday.

In April, unemployment rate increased by 10.3 percent points to 14.7 per cent.

Larry Kudlow, ecomic visor to US President Donald Trump, told reporters at White House said that May is going to be ar tough month.

“May is going to be ar tough month. Look, se numbers, se are numbers that are full of hardship and heartbreak. This is a function of pandemic as we kw. It's a pandemic contraction as we kw,” Kudlow said.

" reason I've dodged specific numbers is simply because I don’t think any ecomic models are any good in this particular environment,” he said in response to a question.

Kudlow said that he has ted many times that Congressional Budget Office and most private forecasting surveys show very strong growth rebound in third quarter.

“And that does jibe with what we’re thinking. Which is interesting to see it in those or sources," he said.

“Second half of year should be very strong, and n I think if we can get a pro-growth, pro-incentive policy mix, which president firmly believes in, 2021 could be a fantastic year. You can really get a big, big, big, big recovery in 2021," Kudlow said.

"I would expect numbers for May will be difficult. I would expect that. w weekly unemployment claims are worth looking at. y're still rising... but rate of decline is slowing. So that’s a glimmer. I don’t want to put too much emphasis on that,” he said.

rescue pack has h a cushioning effect, he said.

Kudlow said that about three-fourths of 20 million jobs losses reported Friday look to be "temporary layoffs.”

“That doesn’t lessen hardship, but it does suggest that things like payroll protection program, and unemployment insurance, and ecomic impact checks and or things has h some cushioning effect,” he said.

“If we’re right about temporary layoffs, n people will go back to work fairly rapidly. t all of m, mind you, but a good chunk,” he ded.

April’s staggering job losses also shattered records for both largest one-month decline in jobs — roughly 2 million in September 1945 — and highest level of unemployment ever recorded by Bureau of Labor Statistics, 10.8 per cent in vember 1982.

Friday’s report follows news on Thursday that ar 3.2 million Americans filed for unemployment benefits last week.

pandemic has killed nearly 76,000 people in United States and infected over 1.2 million.