NEW state unemployment claims have plunged 32.9 percent with 1.43 million new unemployment claims this week.
On Thursday morning, the Department of Labor released the figures and data, which showed an increase of 12,000 from the week before.
The previous week, claims rose after nearly four months of declines, which demonstrated the economic toll of coronavirus on the US economy.
The filings tallied at 1.434 million today versus the 1.45 million claims expected – but it's still the biggest decrease in activity during the second quarter.
The country hasn't experienced such a sharp and sudden drain in such a small timeframe since the Great Depression or the Great Recession.
“Even if it doesn’t keep rising, we’re still in a desperate situation,” Diane Swonk, Chief Economist at Grant Thornton in Chicago, told the New York Times.
She citied claims being in the range of 200,000 range before the nationwide lockdowns.
"This is unique in terms of the speed and magnitude of the job losses," Swonk said, referencing the nationwide lockdown that resulted in mass layoffs and businesses shuttering.
There are fears that the economic situation is rapidly sinking despite a slight recoveryin May and June as businesses shutter once more.
Gross domestic product from April to June nosedived 32.9 percent, according to the Commerce Department’s analysis on Thursday
Dow Jones surveyed economics who predicted a drop of 34.7 percent, reported CNBC.
There were severe contractions in personal consumption, exports, inventories, investment and spending by state and local governments.
All of these dragged down GDP – all goods and services combined that are produced during the period.
Spending is also way down in healthcare, clothing, and footwear, while inventory dips were a result of car dealers and new family housing was hit.
Domestic purchases dropped by 1.5 percent for the period versus 1.4 percent increase in the first quarter when GDP dipped 5 percent.
CNBC noted that the personal consumption expenditures price index dropped 1.9 percent.
This followed a slight rise of 1.3 percent in the first quarter.
The “core” PCE prices were off 1.1 percent
To put the situation in perspective, the worst quarter during the economic crisis of 2008 was the 8.4 percent GDP drop in Q4 – but this time, the fallout is due to the countrywide shutdowns implemented to stop the spread of COVID.
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